Rick Recently Received 600 Shares of Restricted Stock from His

question 64

Essay

Rick recently received 600 shares of restricted stock from his employer, Crazy Corporation, when the share price was $25 per share. Rick's restricted shares vested three years later, when the market price was $32. Rick held the shares for a little more than a year after vesting and sold them when the market price was $35. 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 35 percent, what is the amount of Rick's ordinary income amount and tax liability at the time of the income inclusion?

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Definitions:

Void Methods

Methods in programming that do not return any value after executing a specific operation or function.

Return Statement

A statement used in programming languages to exit a function and possibly return a value to the caller.

Modules

Independent, reusable pieces of code that can be combined with other modules to create complex systems in programming.

Local Identifier

A name that is only accessible within the limited scope of a block, function, or control structure where it is defined.