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Bequired informetion The following information applies to the questions displryed below] Pran is ready to graduate and leave College Park. His future employer (Ferndale Corporation)

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Bequired informetion The following information applies to the questions displryed below] Pran is ready to graduate and leave College Park. His future employer (Ferndale Corporation) offers the following fout compensation packages from which Pratt may choose. Pratt wil start working for Ferndale on January 1 , year 1 Assume that the restricted stock is 1,000 shares that vade at $5 per share on the grant date (January 1 , year 1k, shares ate expected to be worth $10 per share on the vesting date at the end of year 1 ; and no 83[0] election is made. Assume that. the NOO (100 options) each allows the employee to purchase 10 shares at $5 exercise price. The stock trades at $5 per share on the grant dote (January 1 , year 1 ) and is expected to be worth $10 per share on the vesting dote at the end of year t and the options are exercised and sold at the end of the year. Aso assume that Pratt spends on average $3,000 on insurance (treat this as a cash outhow) Assume that Pratt's marginal tax rate is 35 percent fonore fICA taxes and time value of money considerations). 2. Assuming Pratt chooses Opoion 3 and seles the stock on the vesting date fon the last day of year 12 . complete Pratts 5ch dule D and form 8949 for the sale of the restricted stock. Note: input oll the values as positive numbers. Use 2022 tex rules regardless of year on tox form. form 8049 for the sale of the restricted stock. Form aO4O schedule B

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