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?