Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

fill out schedule D and form 8949 from the IRS website Required information Comprehensive Problem 12-50 (LO 12-1, LO 12-2, LO 12-3) (Algo) The following

fill out schedule D and form 8949 from the IRS website
image text in transcribed
image text in transcribed
Required information Comprehensive Problem 12-50 (LO 12-1, LO 12-2, LO 12-3) (Algo) The following information applies to the questions displayed below] Pratt is ready to graduate and leave College Park. His future employer (Ferndale Corporation) offers the following four compensation packages from which Pratt may choose. Pratt will start working for Ferndale on January 1 , year 1. Assume that the restncted stock is 1,000 shares that trade at $5 per share on the grant date (January 1, year 1), shares are expected to be worth $10 per share on the vesting date at the end of year 1 ; and no 83(b) election is made. Assume that the NQOS (100 options) each allows the employee to purchase 10 shares at $5 exercise price. The stock trades at $5 per thare on the grant date (January 1, year i) and is expected to be worth $10 per share on the vesting date at the end of year 1, and the options are exercised and sold at the end of the year. Also assume that Pratt spends on average $3,570 on heaith-related costs that will be covered by insurance if he had coverege or is an aftertax expense if he isn't covered by insurance (treat this as a cash outhow). Assume that Pratts marginal tax rate is 35 percent. (Pgnore FicA taxes and time value of money considerations) Comprehensive Problem 12.50 Part c1 [MUST MANUALLY GRADE) (Algo) Assuming Pratt chooses Option 3 and sells the stock on the vesting date (on the last dary of year 1), complete Pratt's Schecdule D for the sale of the restricted stock, Note: Visit the iRs website and download 1040 Schedule D. Enter the required values in the appropriate fields. Use 2022 tax rules regardlesi of the year on the form. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." upload a response file (15MB max) No flle chaten Required information Comprehenslve Problem 12-50 (LO 12-1, LO 12-2, LO 12-3) (Algo) [The following information applies to the questions displayed below] Pratt is ready to graduate and leave Colege Park. His future employer (Ferndale Corporotion) offers the following four compensation packages from which Pratt may choose. Pratt will start working for Ferndale on January 1, year 1. Assume that the restricted stock is 1,000 shates that trade at $5 per share on the grant date (January 1, year 1, shares are 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 NQOs (100 options) each aliows the employee 10 purchase 10 shares at $5 exercise price. The stock trades at $5 per share on the grant date (January 1, year 1 ) and is expected to be worth $10 per share on the vesting date at the end of year 1. and the options are exercised and sold at the end of the year. Also assume that Prott spends on average $3,570 on health-related costs that will be covered by insurance if he had coverage of is an aftertax expense if he isn't covered by insurance (treat this as a cash outhiom) Assume that Pratt's marginal tax rate is 35 percent. (Ignore FicA taxes and time value of money considerations). Comprehensive Problem 12.50 Port c2 (MUST MANUALLY GRADE) (Algo) Assuming Pratt chooses Option 3 and sells the stock on the vesting date (on the last doy of year 1). complete Pratrs Form a949 for the sale of the restricted stocik. Note: Visit the IRS website and download Form 8949. Enter the required values in the appropriate fields. Use 2022 tax rules regardless of the year on the form, Save your completed Tax Form to your computer and then uplond it here by clieking "Browse," Next, click "Save

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: Srivastava Lal, Jawahar Lal

5th Edition

1259026523, 978-1259026522

More Books

Students also viewed these Accounting questions

Question

Appreciate common obstacles to performance appraisals

Answered: 1 week ago

Question

Recognize traditional approaches to performance appraisals

Answered: 1 week ago