7. On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $7 per share. Daves 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 of RRK will be $32 per share when his shares vest and will be $40 per share when he sells them. If Daves stock price predictions are correct, what are the tax consequences of the date of vesting to Dave if his ordinary marginal rate is 30 percent and his long-term capital gains rate is 15 percent?