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

question 74

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.$8,000 (1,000 shares × $8 market price on grant date) .

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