Rick Recently Received 500 Shares of Restricted Stock from His

question 92

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. 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:

Special Education Programs

Educational arrangements designed to address the unique needs of students with learning disabilities or special needs.

Mainstreaming

An educational approach in which exceptional children are integrated as much as possible into the traditional educational system and are provided with a broad range of educational alternatives.

Integration

Integration refers to the process of combining distinct parts or aspects into a unified whole, often used in the context of psychological and neurological functions to create a cohesive sense of self or understanding.

Middle Adulthood

A life stage occurring roughly between the ages of 40 to 65, characterized by stability, personal and professional growth, and increased self-awareness.