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I need help finding the grant date tax benefit. Required Informetion [The following Information applies to the questions displayed below On January 1, year 1,
I need help finding the grant date tax benefit.
Required Informetion [The following Information applies to the questions displayed below On January 1, year 1, Dave recelved 2,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $21 per share. On recelving 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 $40 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero If applicable. Round your final answer to the neerest whole dollar value. Enter all amounts as positlve values.) b. If Dave's stock price predictions are correct, What are the tax consequences of these transactions to RRK if its marginal rate is 21 percent? Tax Benefit Grant date Vesting date Sale dateStep by Step Solution
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