Rick Recently Received 500 Shares of Restricted Stock from His

question 97

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. Assuming that Rick made an election under section 83(b)when the stock was granted and that his marginal tax rate is 24 percent, what is the amount of Rick's income inclusion and tax liability upon the sale of the stock?

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Definitions:

Geographical Structures

Organizational structures that are defined based on geographical regions to manage operations across different areas.

Differentiate Products

The process of making a product or service stand out from competitors by highlighting its unique features or benefits.

Requirements

Stipulated needs or conditions that must be met in a specific context, such as for a project, system, or product.

Product Structures

The organization and hierarchy of components within a product, specifying how different parts are interconnected or assembled.