Stevie Recently Received 1,000 Shares of Restricted Stock from Her

question 90

Multiple Choice

Stevie recently received 1,000 shares of restricted stock from her employer, Nicks Corporation, when the share price was $8 per share. Stevie's restricted shares vested three years later when the market price was $11. Stevie held the shares for a little more than a year and sold them when the market price was $16. What is the amount of Stevie's ordinary income with respect to the restricted stock?

• A)$0
• B)$5,000
• C)$8,000
• D)$11,000

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Definitions:

Frederick W. Taylor

Frederick W. Taylor is known as the father of scientific management, a theory that applies scientific principles to increase organizational efficiency and labor productivity.

Dramatically Improved Output

A significant enhancement in the efficiency or productivity of a process, resulting in higher yields or better quality.

Esprit de Corps

A feeling of pride, fellowship, and common loyalty shared by members of a particular group.

Harmonious Effort

Cooperative and synchronized actions among members of a group towards a shared goal.