12. Tobey receives 1,000 shares of You Dog stock as part of his compensation package. Tobey's employment contract with You Dog!, Inc. states that if he leaves before completion of three years of employment, he will forfeit the stock. The stock currently has a FMV of $12 per share. Which of the following statements regarding Tobey's choices is NOT true?

a. Tobey does not have to recognize any income from receiving the stock until his rights to the stock are fully vested.

b. Tobey must report $12,000 as income due to the receipt of the stock in the current year.

c. Tobey may elect to report the $12,000 FMV of the stock as ordinary income in the current year.

d. If Tobey elects to report $12,000 as income in the current year and the stock price falls to $5 per share when his rights to the stock are vested, Tobey is not allowed to deduct a loss.