If the Special Election Under § 83(b) Is Made as a Result

question 11

Multiple Choice

If the special election under § 83(b) is made as a result of a restricted property transaction, which statement is false?

• A)A factor supporting making the § 83(b) election is the expectation the property will appreciate substantially.
• B)Ordinary income is recognized on the excess of the FMV over the amount paid for the property on the date received.
• C)Any appreciation on the property after receipt is treated as capital gain.
• D)A deduction is allowed to the employee for any taxes paid on the original amount included in gross income if the property is subsequently forfeited.
• E)None of these is false.

---

Definitions:

ACP

Average Collection Period, indicating the average number of days it takes a company to collect payments from its credit sales.

Du Pont Analysis

A framework for analyzing a company's return on equity (ROE) by breaking it down into its constituent components to assess operational efficiency.

Total Assets Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using shareholders’ funds to generate profit.