Noncash Compensation. For each of the following items, indicate whether the individual

taxpayer must include any amount in gross income.

a. Employees of Eastside Bookstore are given their birthdays off with pay.

b. Westside Hardware, Inc., gave each employee 10 shares of Westside stock worth $100

per share in lieu of a cash bonus.

c. Employees of Northside Manufacturing were allowed to take home the company's old

computers when the company purchased new ones.

i:3-35 Constructive Receipt. Which of the following constitutes constructive receipt in the cur-

rent year ended December 31?

a. A salary check received at 6:00 p.m. on December 31, after all the banks have closed.

b. A rent check received on December 30 by the manager of an apartment complex. The

manager normally collects the rent for the owner. The owner was out of town.

c. A paycheck received on December 29 that was not honored by the bank because the

employer's account did not have sufficient funds.

d. A check received on December 30. The check was postdated January 2 of the following

year.

e. A check received on January 2. The check had been mailed on December 30.