On January $1,$ year $1,$ Dave received $1,000$ shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $$10$ per share. On receiving the restricted stock, Dave made the $83($b$)$ election. Dave$$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 $$45$ per share when his shares vest and will be $$64$ per share when he sells them. Assume that Dave$$s price predictions are correct and answer the following questions:

a$.$ What are Dave$$s taxes due if his ordinary marginal rate is $32$ percent and his long$-$term capital gains rate is $15$ percent?

Taxes Due

Grant date $[$ANSWER IS $$5,760]$

Vesting date $[$ANSWER IS $$0]$

Sale date $[$ANSWER IS $$14,580]$

b$.$ What are the tax consequences of these transactions to RRK$?$

Tax Consequences

Grant date

Vesting date $[$ANSWER IS $$0]$

Sale date $[$ANSWER IS $$0]$