Rick Recently Received 500 Shares of Restricted Stock from His

question 97

Essay

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. Assuming that Rick made an election under section 83(b)when the stock was granted and that his marginal tax rate is 24 percent, what is the amount of Rick's income inclusion and tax liability upon the sale of the stock?

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Definitions:

Brain Scans

Imaging techniques, such as MRI or CT scans, used to visualize the structure or function of the brain.

Functional Magnetic Resonance Imaging

A neuroimaging technique that measures brain activity by detecting changes associated with blood flow, used to understand brain function.

Blood Oxygen

The level of oxygen saturation in the blood, an important indicator of respiratory and circulatory system health.

Radio Frequencies

Electromagnetic waves typically ranging from 3 kHz to 300 GHz, used in various technologies including radio, television, and mobile phones.