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complete for upvote QUESTIONS On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation, On that date, the
complete for upvote
QUESTIONS 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 $9 per share. On receiving the restricted stock, Dave made the $83(b) election. Dave's 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 $30 per share when his shares vest and will be $40 per share when he sells them. Assume that Dave's price predictions are correct. What are the tax consequences of the date of grant to Dave if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent? QUESTION 10 JDD Corporation provides the following benefits to its employee, Ahmed (age 47): Salary $280,000 Health insurance: $10,000 Dental insurance: $2,000 Life Insurance: $3,000 Dependent care: $5,000 Professional dues: $500 Personal use of company jet: $200,000 Assume the life insurance is a group-term life insurance policy that provides $200,000 of coverage for Ahmed. What is the total amount of taxable wages and benefitsStep by Step Solution
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