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

question 58

Multiple Choice

Stevie recently received 1,000 shares of restricted stock from her employer, NicksCorporation, when the share price was $8 per share. Stevie's restricted shares vestedthree 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. What is the amount of Stevie's ordinary income with respect to the restricted stock?

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

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Definitions:

Unresolved Childhood Conflicts

Unaddressed and persistent psychological struggles stemming from childhood experiences, often affecting adult behavior and mental health.

Fixation

An obsessive interest or feeling towards a person or idea, or in psychoanalytic theory, a failure to progress beyond a developmental stage.

Oedipus Complex

A psychoanalytic concept that describes a child's feelings of desire for the opposite-sex parent and jealousy and rivalry with the same-sex parent.

Psychosexual Stage

Stages in Freudian psychoanalysis that map out the development of personality and sexual orientation from childhood through adulthood.