Byron, age 60, is a participant in the stock bonus plan of Tally, Inc., a closely held corporation. Byron received contributions in shares to the stock bonus plan and Tally, Inc. took income tax deductions as follows: Year # of Shares Value per Share (At Time of Contribution) Year 1 100 $10 Year 2 125 $12 Year 3 150 $13 Year 4 200 $15 Year 5 400 $18 Byron terminates employment and takes a distribution from the plan of 975 shares of Tally, Inc., having a fair value of $19,500. What are Byron's tax consequences? There are no immediate tax consequences because he has not sold the stock. Byron has ordinary income of $14,650 at distribution. Byron has net unrealized appreciation of $19,500 at distribution. Byron has ordinary income of $19,500 at distribution