Rick Recently Received 500 Shares of Restricted Stock from His

question 114

Essay

Rick recently received 500 shares of restricted stock from his employer, Crazy Corporation, when the share price was $5 per share. Rick's restricted shares vested three years later, when the market price was $12. Rick held the shares for a little more than a year after vesting and sold them when the market price was $15. What is the amount of Rick's compensation income if Rick made an election under section 83(b)when the stock was granted? Assuming a marginal tax rate of 35 percent, what is the amount of Rick's ordinary income amount and tax liability at the time of the income inclusion?

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Definitions:

Inclusion Terms

Specific terms used within medical coding and classification systems to define the scope of a particular category or code.

ICD-10-CM General Note

Guidelines and instructions provided within the International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM) coding manual, assisting in the appropriate selection of codes for diagnoses.

Inclusion Notes

Documentation or observations included in a study or report that specify criteria under which observations are recorded or subjects are included.