Mr. Granger was employed by a closely held corporation that issued him a year-end bonus of 50 shares of stock worth $200 per share. Mr. Granger’s ownership of the stock was nontransferable and restricted. If he resigned from his job within four years of the date of issuance, he would forfeit the stock back to the corporation. Mr. Granger died in a traffic accident two years after receiving the restricted stock. Under the terms of his will, his ownership interest in the stock passes to his widow.

Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.