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K's employer (ABC Corporation) awarded her 1,000 shares of restricted stock. The price at the time the shares were awarded was $7 per share. Her
K's employer (ABC Corporation) awarded her 1,000 shares of restricted stock. The price at the time the shares were awarded was $7 per share. Her shares vested (that is, the restrictions were removed) three years later. The market price at the time she vested in the shares was $10 per share. She held the shares for two additional years after becoming vested, at which time she sold them for the then market price of $16 per share. Assuming K did not make an IRC 583(b) election, what is the amount of ordinary income does K recognize? a. $6,000. b. $10,000. c. $7,000. d. $0
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