Final answer:
Bryce will have gross income at the end of the year after receiving a bond from Scott, as he is responsible for the income generated from the bond.
Step-by-step explanation:
The question regarding whether Scott or Bryce will have gross income at the end of the year after Scott gives a bond to his grandson Bryce on January 1 involves understanding the tax implications of gifts and income generation from assets like bonds. In general, when a bond is transferred as a gift, the recipient (in this case, Bryce) becomes responsible for the income generated from that bond, such as interest. Therefore, Bryce will have gross income at the end of the year, not Scott, assuming the bond has generated income during the year.