Question

Stevie recently received 1,010 shares of restricted stock from her employer, Nicks Corporation, when the share...

Stevie recently received 1,010 shares of restricted stock from her employer, Nicks Corporation, when the share price was $10 per share. Stevie's restricted shares vested three years later when the market price was $13. Stevie held the shares for a little more than a year and sold them when the market price was $14. Assuming Stevie made a section 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?

Multiple Choice

a. $0.

b. $1,010.

c. $10,100.

d. $13,130

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Joseph received 5,000 shares of restricted (common) stock from his employer on July 1, 2018. The...
Joseph received 5,000 shares of restricted (common) stock from his employer on July 1, 2018. The terms of the restricted stock grant are such that if Joseph is still employed by Alternative Energy on July 1, 2022 the entire 5,000 shares will vest and become his property. Joseph, upon the advice of his tax advisor, prepared and filed an IRC Section 83(b) election on July 8, 2018. On July 1, 2018, the shares were valued at $5 per share. Joseph...
On January 1, year 1, Dave received 2,150 shares of restricted stock from his employer, RRK...
On January 1, year 1, Dave received 2,150 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $24 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4, when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price...
On January 1, year 1, Dave received 1,650 shares of restricted stock from his employer, RRK...
On January 1, year 1, Dave received 1,650 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $25 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave’s restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price...
Jill was granted 1,000 shares of restricted stock when she joined the company. The share price...
Jill was granted 1,000 shares of restricted stock when she joined the company. The share price was 6$ on the date of grant, 9$ when the restrictions lapsed, and 15$ when she disposed of the stock. No section 83(b) election was made. What is the amount and character of Jill's income on the date the restrictions lapse?
Suzanne received 20 stock options (each option gives her the right to purchase 20 shares of...
Suzanne received 20 stock options (each option gives her the right to purchase 20 shares of stock for $12 per share) at the time she started working when the stock price was $13 per share. Three years later, when the share price was $23 per share, she exercised all of her options. Suzanne held the shares for two additional years and sold them when the market price was $30. Her marginal tax rate is 32% and her capital gains tax...
13. Rachel receives employer provided health insurance. The employer's cost of the health insurance is $6,800...
13. Rachel receives employer provided health insurance. The employer's cost of the health insurance is $6,800 annually. What is her employer's after-tax cost of providing the health insurance, assuming that the employer's marginal tax rate is 35 percent and is profitable? MULTIPLE CHOICE $0 $4,420 $4,198 $6,800 14. Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started working when the stock price was $6...
On January 1, 2017, Flounder Corporation granted 1,900 shares of restricted $5 par value common stock...
On January 1, 2017, Flounder Corporation granted 1,900 shares of restricted $5 par value common stock to executives. The market price (fair value) of the stock is $63 per share on the date of grant. The period of benefit is 2 years. Prepare Flounder’s journal entries for January 1, 2017, and December 31, 2017 and 2018.
1. Louis purchased 300 shares of stock on margin for $22.15 a share and sold the...
1. Louis purchased 300 shares of stock on margin for $22.15 a share and sold the shares eleven months later for $24.50 a share. The initial margin requirement was 75 percent and the maintenance margin was 30 percent. The interest rate on the margin loan was 8.5 percent. He received no dividend income. What was his holding period return? Multiple Choice 8.45 percent 9.88 percent 10.76 percent 7.05 percent 11.56 percent 2.   You purchased six put option contracts with a...
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit...
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted stock units (RSUs) representing 19 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $6.00 per share on the grant date. Management’s policy is to estimate forfeitures.    Required: 1. Determine the...
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit...
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted stock units (RSUs) representing 24 million of its $1 par common shares to various division managers. The shares are subject to forfeiture if employment is terminated within three years. The common shares have a market price of $4.50 per share on the grant date. Management’s policy is to estimate forfeitures. Required: 1. Determine the total...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT