Kim is an employee of Azure Corporation. In the current year, she receives a cash salary of $106,200 and also is given 45 shares of Azure stock for services she renders to the corporation. The shares in Azure Corporation are worth $2,500 each. a.  How will the transfer of the 45 shares to Kim be handled for tax purposes?   Kim's basis in the stock is $fill in the blank 2 ______? b.  What is Azure Corporation's total compensation deduction for Kim's services? $fill in the blank 3 _________?

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.