Mike was awarded 1,000 shares of restricted stock of B Corp at a time when the stock price was $14. Assume Mike properly makes an 83(b) election at the date of the award. The stock vests 2 years later at a price of $12 and Mike sells it then. What are Mikes tax consequences in the year of sale?

I. In the year of grant, Mike has W-2 income of $12,000.

II. In the year of sale, Mike has a long-term capital loss of $2,000.

III. In the year of grant, Mike has W-2 income of $14,000.

IV. In the year of sale, Mike has a $12,000 long-term capital gain.

A. I and II

B. II and III

C. III and IV

D. I and IV