An Employee Who Receives Restricted Stock as Compensation from a Corporate

question 77

True/False

An employee who receives restricted stock as compensation from a corporate employer must include the stock's fair market value in gross income in the year of receipt, even though the employee's ownership rights in the stock are nonvested.

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Definitions:

Locus

(pl., loci) The place on the chromosome at which the gene for a given trait occurs (i.e., a segment of the chromosomal DNA containing information that controls some feature of the organism); also called gene locus.

Homozygous

Having a pair of identical alleles for a particular locus. Compare with heterozygous.

Heterozygous

Describes an individual having two different alleles for a specific gene.

Alleles

Genes governing variation of the same character that occupy corresponding positions (loci) on homologous chromosomes; alternative forms of a gene.