Tom Recently Received 2,000 Shares of Restricted Stock from His

question 69

Multiple Choice

Tom recently received 2,000 shares of restricted stock from his employer, Independence Corporation, when the share price was $10 per share. Tom's restricted shares vested three years later when the market price was $14. Tom held the shares for a little more than a year and sold them when the market price was $20. What is the amount of Tom's income or loss on the vesting date?

• A)$0
• B)$10,000
• C)$20,000
• D)$28,000

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Definitions:

Demand for British Pounds

The desire or need by individuals, businesses, or countries to purchase or hold British currency for the purpose of investment or transactions.

Currency Market

A global market where currencies are traded against each other, determining their exchange rates.

Appreciation

An increase in the value of an asset over time, which can be influenced by factors like demand, inflation, and currency value changes.

Exchange Rate

An exchange rate is the value of one currency for the purpose of conversion to another currency.