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

question 101

Multiple Choice

Stevie recently received 1,000 shares of restricted stock from her employer, Nicks Corporation, when the share price was $8 per share. Stevie's restricted shares vested three 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 a section 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?

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

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Definitions:

New Ideas

In psychology, this can refer to innovative theories, practices, or approaches that challenge existing paradigms.

Disclosure

The action of making new or secret information known.

Covert Research

Covert research refers to studies where the subjects are unaware they are being observed or studied, often used in sociology and psychology to observe natural behaviors without the influence of the observer's presence.

Replicate

To duplicate a study or experiment to verify its results.