Which of the Following Statements Regarding Restricted Stock Is False

question 22

Multiple Choice

Which of the following statements regarding restricted stock is false?

• A)Like stock options, restricted stock has to vest before it can be sold.
• B)Like nonqualified stock options, the employee's income inclusion for restricted stock is the bargain element.
• C)Even if the value of restricted stock decreases from the price on the grant date, it retains some value to the employee.
• D)There are no effective tax planning elections for restricted stock.

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Definitions:

Business Transactions

Business transactions are economic events that affect a company's financial position, involving exchanges of value between two parties.

Personal Transactions

Financial activities that are not related to the business and pertain to the personal dealings of an individual or owner.

Owners

Refers to individuals or entities that have legal ownership and control over a business or property.

Depreciable Asset

A tangible or intangible asset subject to depreciation, representing its loss in value over time due to usage or obsolescence.