Choice 'd' is correct. An individual receiving common stock for services rendered must recognize the fair market value as ordinary income. Any dividends received on that stock would also result in income recognition.

Choice 'a' is incorrect. Employer-provided medical insurance is a tax-free fringe benefit.

Choices 'b' and 'c' are incorrect. Gifts and inheritances are both tax-free to the recipient. (Remember tax is often paid by the person giving the gift or the estate at death.)