Which of the Following Is False Regarding a Section 83(b)election

question 30

Multiple Choice

Which of the following is false regarding a section 83(b) election?

• A)The election freezes the value of the employee's compensation as of the grant date.
• B)The election is an important tax-planning tool if the stock is expected to increase in value.
• C)The election must be made within 30 days of the grant date.
• D)If an employee leaves before the vesting date, any loss is limited to $3,000.

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Definitions:

Nitrogen Fixation

The process by which atmospheric nitrogen is converted into a form usable by plants, often facilitated by bacteria.

Assimilation

The process by which living organisms integrate nutrients from their environment into their own biological processes.

Assimilation

The process by which living organisms integrate nutrients from their environment to carry out biological functions.

Rain Shadow

A dry area on the leeward side of a mountainous area, where rainfall is significantly reduced due to the blocking of rain-bearing winds.