Rick Recently Received 500 Shares of Restricted Stock from His

question 11

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 and sold them when the market price was $15. 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?

---

Definitions:

Abuses

Acts or situations that involve maltreatment or misuse, often resulting in harm or unfair treatment.

Outside Agents

External individuals or entities that influence or intervene in a system, situation, or organization, often bringing change or external perspectives.

Slippery Slope

A logical fallacy or argument that suggests taking a minor action will lead to major and increasingly negative consequences, without sufficient evidence for those outcomes.

Police Corruption

Unethical or criminal acts conducted by police officers, often for personal gain or to further the interests of the police force at the expense of public trust.