Morrris, an Attorney, Performs 5 Hours of Legal Work for Andy

Multiple Choice

Morrris, an attorney, performs 5 hours of legal work for Andy. Morrris 's normal billing rate is $120 per hour. Andy, a software consultant, gives Morrris a new computer for his office in payment of the bill. The computer's adjusted basis was $500 and its fair market value is $550. Morrris ' basis in the computer is

A) $- 0 -
B) $500
C) $550
D) $600
E) $1,150