Rick Recently Received 500 Shares of Restricted Stock from His

question 31

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 39.6 percent,what is Rick's tax on the sale of the stock?

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