Rick Recently Received 500 Shares of Restricted Stock from His

question 75

Short Answer

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 sale of the stock? Assuming a marginal tax rate of 39.6 percent, what is Rick's tax on the sale of the stock?

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Definitions:

Neurosis

A term for mental health issues characterized by high levels of stress and anxiety but not involving losing touch with reality.

Personality Disorder

A type of mental disorder marked by rigid and unhealthy patterns of thinking, functioning, and behaving.

Durham Rule

A legal criterion used to determine criminal culpability by evaluating the defendant's mental incapacity to distinguish right from wrong as a consequence of mental illness.

Psychiatric Profession

The field of healthcare specializing in the diagnosis, treatment, and prevention of mental health disorders.