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Rick recently received 500 shares of restricted stock from his employer,Crazy Corporation,when the share price was $5 per share.Rick's restricted shares vested three years later when the market price was $12.Rick held the shares for a little more than a year after vesting and sold them when the market price was $15.What is the amount of Rick's compensation income if Rick made an election under section 83(b)when the stock was granted? Assuming a marginal tax rate of 30 percent,what is the amount of Rick's ordinary income amount and tax liability at the time of the income inclusion?
Performance Comparison
The process of comparing the actual performance of an individual, group, or process against set standards or expectations.
Accounting Statements
Financial documents that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.
Ratios
Quantitative measures used to assess the financial performance, liquidity, efficiency, or risk of a business entity.
Current Ratio
This ratio indicates how well a business can settle its short-term debts with assets that are readily available.
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