Stevie Recently Received 1,000 Shares of Restricted Stock from Her

question 101

Multiple Choice

Stevie recently received 1,000 shares of restricted stock from her employer, Nicks Corporation, when the share price was $8 per share. Stevie's restricted shares vested three years later when the market price was $11. Stevie held the shares for a little more than a year and sold them when the market price was $16. Assuming Stevie made a section 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?

• A)$0
• B)$5,000
• C)$8,000
• D)$11,000

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Definitions:

Just Compensation

A principle requiring that if private property is taken for public use, the owner must be fairly compensated.

Real Property

Land and anything permanently affixed to it, such as buildings or structures.

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A species of coniferous tree known for its tall growth and significant timber production.

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Property that is rented under a lease agreement, typically for commercial or residential use.