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:

Reggio Emilia

An educational approach for young children that emphasizes self-directed, experiential learning in a relationship-driven environment.

Facilitator

An individual who makes an action or process easy or easier, often used in the context of learning or meeting environments.

Montessori

A method of education that is based on self-directed activity, hands-on learning, and collaborative play.

Director

A person who is in charge of an organization, department, or production, like a movie or play.