Question
Complete the problems listed below relating to BIO-SCI Corp for its employee, Jone Lee. For each event of each problem, indicate if this is a
Complete the problems listed below relating to BIO-SCI Corp for its employee, Jone Lee. For each event of each problem, indicate if this is a taxable event, amount of taxable income and character of the income. Also indicate the starting date for the holding period of the underlying stock. (Note: Ignore AMT for all problems)
1. BIO-SCI issued RESTRICTED Stock(Cliff Vesting effective June 15, 2014) to Jone as follows:
a. July 1, 2013 - Granted 200,000 shares (FMV = $10/share).
b. June 15, 2014 Restrictions Lapse (FMV = $16/share)
c. October 20, 2015 Sold 100,00 shares of stock (Proceeds = $21/share)
d. If Jone made an Section 83(b) election on July 1, 2013 for all 200,000 shares, recomputed your answers to a, b, and c.
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