?

Blair, CPA, uses the cash receipts and disbursements
method of reporting. In 2012, a client gave Blair 100 shares of a
listed corporation’s stock in full satisfaction of a $5,000 accounting
fee the client owed Blair. This stock had a fair market value of
$4,000 on the date it was given to Blair. The client’s basis for this
stock was $3,000. Blair sold the stock for cash in January 2013.
In Blair’s 2012 return, what amount of income should be reported
in connection with the receipt of the stock?