Rick Recently Received 500 Shares of Restricted Stock from His

question 10

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 income on the vesting date? Assuming a marginal tax rate of 30 percent,what is Rick's tax on the restricted stock?

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Definitions:

Abnormal

Deviating from the norm or average, especially in behavior or mental health, implying a significant difference from what is considered typical or usual.

Social Norm Deviance

Behaviors or actions that violate the unwritten rules or expectations of society or a specific group, leading to social disapproval or sanctions.

Abnormal

Refers to patterns of behavior, thought, or emotion considered to be outside the norm or dysfunctional.

Psychodynamic Model

A framework in psychology that emphasizes the influence of unconscious drives and forces on human behavior.