Rick Recently Received 545 Shares of Restricted Stock from His

question 67

Essay

Rick recently received 545 shares of restricted stock from his employer, Crazy Corporation, when the share price was $14 per share. Rick's restricted shares vested three years later, when the market price was $21. Rick held the shares for a little more than a year and sold them when the market price was $24. What is the amount of Rick's gain on the sale of the stock? Assuming a marginal tax rate of 37 percent, what is Rick's tax on the sale of the stock?

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Definitions:

Creative

Pertains to the ability or quality of generating original ideas, approaches, and solutions to problems or challenges.

Debt Financing

Refers to raising funds for company operations or expansion by borrowing money.

Equity Financing

Raising capital through the sale of shares in a company.

Entrepreneurial Start Up

A phase in the life of a business where an idea is transformed into a marketable product or service through innovative means.