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On January 1, year 1, Dave received 1,550 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $14

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On January 1, year 1, Dave received 1,550 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $14 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 $38 per share when his shares vest and will be $46 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 nearest whole dollar value. Enter all amounts as positive values.) Problem 12-34 Part a (Algo) 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? Answer is complete but not entirely correct. Grant date Vesting date Sale date Taxes Due $ 0 X 18,848 X 1,860 X On January 1 year 1. Dave received 1,550 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $14 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 $38 per share when his shares vest and will be $46 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 nearest whole dollar value. Enter all amounts as positive values.) Problem 12-34 Part b (Algo) b. If Dave's stock price predictions are correct, what are the tax consequences of these transactions to RRK? Tax consequences Grant date Vesting date Sale date W

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