Tom Recently Received 2,000 Shares of Restricted Stock from His

question 57

Multiple Choice

Tom recently received 2,000 shares of restricted stock from his employer, Independence Corporation, when the share price was $10 per share. Tom's restricted shares vested three years later when the market price was $14. Tom held the shares for a little more than a year and sold them when the market price was $12. What is the amount of Tom's income or loss on the sale?

• A) $4,000 loss.
• B) $2,000 loss.
• C) $0.
• D) $4,000 gain.

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Definitions:

Criterion Behavior

Criterion behavior refers to a specific behavior that serves as a standard or reference for evaluating or assessing performance or conditions.

Reciprocal Relationship

A mutual exchange or interaction between two entities, where each party gives and receives something of value.

Schooling

The process of receiving formal education, typically in a school institution.

Intelligence Scores

Quantitative assessments derived from standardized tests designed to measure an individual’s cognitive abilities and potential.