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

question 101

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. Assuming Stevie made a section 83(b) election, 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:

Unattainable Production

A situation where the level of production desired cannot be achieved with the available resources or technology.

Hybrid Cars

Vehicles that use a combination of an internal combustion engine and one or more electric motors to reduce fuel consumption and emissions.

Opportunity Cost

The value of the best alternative forgone when a decision is made over others.

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, using less fuel and emitting less CO2 than conventional vehicles.