Objective Short Answer 9. Taxpayer ("T") owned a company ("C") which developed software. T owned all 1,000 shares of C stock. T's compensation for working at C included the following: .T received a payment of $75,000 cash from C on December 31 of each year. .C put aside $25,000 per year, for T's retirement, into an account which would begin to pay T (or T's family if T were dead) 10% of the account value when T reached the age of 65 (T is currently 50). In addition, on MARCH 1 AND OCTOBER 1 of each year, each share of C stock pays a dividend of $10 per share in cash and entitled each shareholder to .01 additional C shares (meaning these payments were made in both March and October). During the current year: (i) On July 1, T assigned/gifted the $75,000 cash payment to T's son S, and (ii) on July 1, T gifted 15% ownership in the C Corporation (150 shares) to T's daughter D, when the gifted shares had a fair market value of $1,500,000 and an adjusted basis of $60,000 to T What income, if any, will T recognize in the current year?