Question
1) Tom recently received 2,160 shares of restricted stock from his employer, Independence Corporation, when the share price was $11 per share. Tom's restricted shares
1) Tom recently received 2,160 shares of restricted stock from his employer, Independence Corporation, when the share price was $11 per share. Tom's restricted shares vested three years later when the market price was $15. Tom held the shares for a little more than a year and sold them when the market price was $13. What is the amount of Tom's income or loss on the sale?
Multiple Choice
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$0.
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$2,160 loss.
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$4,320 gain.
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$4,320 loss.
2) Stevie recently received 1,100 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
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$0.
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$1,100.
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$11,000.
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$14,300
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