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

question 69

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. 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.

---

Definitions:

In-Kind Transfers

Transfers of goods or services from one party to another as a form of payment or aid, rather than transferring cash.

Economic Pie

A metaphorical representation of a nation's total economic output, suggesting how much wealth is available for distribution among its population.

Same Income

A situation where two or more individuals or entities earn an identical amount of money over a given period.

Poverty Threshold

The minimum income level deemed necessary to achieve an adequate standard of living in a given country or region.