Sally is an attorney, anda client offers to pay her with 1000 shares of stock in the new June Corporation for her help with their incorporation and licensing.What is Sally's basis in the stock if:

a. The stock in the new corporation is actively traded at $10 per share and Sally has a fee schedule that varies depending on the difficulty of thelegal work, the time involved, and the risk involved?She could charge them $8,000 or $12,000 depending on how much she thinks they can pay in cash.

b. The stockcan't be valued with any accuracy because it is a new company and no shares have been tradedby the original owners.Sally normally charges $10,000 in legal fees foran original incorporation of abusinesses likethis.