Tom Recently Received 2,000 Shares of Restricted Stock from His

question 100

Multiple Choice

Tom recently received 2,000 shares of restricted stock from his employer, Independence Corporation, when the share price was $10 per share. Tom's restricted shares vested three years later when the market price was $14. Tom held the shares for a little more than a year and sold them when the market price was $12. What is the amount of Tom's income or loss on the sale?

• A)$0
• B)$2,000 loss
• C)$4,000 gain
• D)$4,000 loss

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Definitions:

North America

A continent located in the Northern Hemisphere, mostly in the Western Hemisphere, including countries such as the United States, Canada, and Mexico.

Financially Independent

The status of having enough personal wealth to live, without having to work actively for basic necessities.

Adulthood

The period in human development after adolescence, marked by full physical development, legal responsibilities, and social independence.

Endurance

The capacity to sustain a physical or mental effort for an extended period, often critical in sports, academics, and personal challenges.