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Financial Services bought its own stock on the open market for $20,000. It later used this treasury stock to pay Dan Scott, who performed services...
Financial Services bought its own stock on the open market for $20,000. It later used this treasury stock to pay Dan Scott, who performed services for the company. The stock was worth $40,000 at the time it was paid to Dan. Which of the following is true?
A.Dan has no compensation income and Financial Services has no gain.
B.Dan has no compensation income and Financial Services has a $20,000 gain.
C.Dan has $40,000 compensation income and Financial Services has no gain.
D.Dan has $40,000 compensation income and Financial Services has a $20,000 gain.
