Rick Recently Received 585 Shares of Restricted Stock from His

question 101

Essay

Rick recently received 585 shares of restricted stock from his employer, Crazy Corporation, when the share price was $22 per share. Rick's restricted shares vested three years later, when the market price was $29. Rick held the shares for a little more than a year after vesting and sold them when the market price was $32. 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:

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors, such as self-induced vomiting, to prevent weight gain.

Induce Vomiting

A method of deliberately causing oneself or another person to vomit, often used in cases of ingestion of toxic substances, though medically not always recommended.

Eating Disorder

A mental disorder characterized by abnormal or disturbed eating habits that significantly impact one's health and daily functioning.

Legal Status

The standing or condition of an entity (person, organization, or object) defined or sanctioned by law, including rights, responsibilities, and liabilities.