On January 1, year 1, Dave received 2,500 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $13 per share. Daves 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 $33 per share when his shares vest and will be $54 per share when he sells them.

a.	If Daves stock price predictions are correct, what are the taxes due on these transactions to Dave if his ordinary marginal rate is 30 percent and his long-term capital gains rate is 15 percent? (Leave no answer blank. Enter zero if applicable.)
	Taxes Due on Grant Date = Taxes Due on Vesting Date = Taxes Due on Sale Date =

b.	If Daves stock price predictions are correct, what are the tax consequences of these transactions toRRK if its marginal rate is 35 percent? (Leave no answer blank. Enter zero if applicable.)

Tax Benefit on Grant Date =

Tax Benefit on Vesting Date =

Tax Benefit on Sale Date =