Stevie Recently Received 1,080 Shares of Restricted Stock from Her

question 59

Multiple Choice

Stevie recently received 1,080 shares of restricted stock from her employer, Nicks Corporation, when the share price was $9 per share. Stevie's restricted shares vested three years later when the market price was $12. Stevie held the shares for a little more than a year and sold them when the market price was $15. Assuming Stevie made a section 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?

• A)$0
• B)$3,240
• C)$9,720
• D)$12,960

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Definitions:

Upper Control Limit

In process control, the maximum value on a chart indicating the threshold of acceptable variation in a process.

Operator Action

The specific actions or interventions performed by a person or control system operating machinery or equipment, often in response to indicators or to manage a process.

Lower Control Limit

A statistic used in process control that represents the lowest acceptable boundary for process variation.

ISO 9001:2015

An international standard that specifies requirements for a quality management system (QMS).