Rick Recently Received 500 Shares of Restricted Stock from His

question 55

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.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 30 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:

Alcohol Use

The consumption of beverages containing ethanol, which can range from moderate drinking to alcohol abuse and dependence.

Erectile Dysfunction

A condition marked by the inability to achieve or maintain an erection suitable for sexual intercourse.

Diabetes

(1) One of the most common diseases of childhood. It is characterized by high levels of glucose in the blood as a result of defective insulin production, ineffective insulin action, or both. (2) Disease in which the body does not produce or properly use insulin, a hormone that converts sugar, starches, and other foods into energy needed for daily life.

Heart Disease

A range of conditions affecting the heart or blood vessels, often associated with atherosclerosis, hypertension, or genetic factors.