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

question 5

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. Assuming Stevie made asection 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?

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

---

Definitions:

Future

Future refers to the time or period that is to come after the present, often considered in the context of uncertainty or potential.

Recognition

In accounting, recognition refers to the formal recording of an item in the financial statements, acknowledging its existence and the fact that it meets the criteria for financial reporting.

Revenue

Income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Deferral

A deferral occurs when cash related to a future revenue or expense has been initially recorded as a liability or an asset.