Lydia was granted restricted stock by her employer. Which correct describes Lydia's the tax consequences related to the grant?

Multiple choice question.

Lydia must defer the recognition of taxable income associated with the grant at the time the restricted stock vests.

Lydia has the option of electing to recognize the value of the grant currently or deferring all income recognition associated with the grant until vesting.

Lydia must recognize taxable income equal to the value of the grant in the year of the grant.