On January $1,$ year $1,$ Dave recelved $1,000$ shares of restricted stock from his employer, RRK Corporation. On

that date, the stock price was $$7$ per share. 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 $$30$ per share when his shares vest and will be

$$40$ per share when he sells them.

Note: Leave no answer blank. Enter zero if applicable. Input all amounts as positive values.

Requlred:

a$.$ If Dave's stock price predictions are correct, what are the taxes due on these transactions to Dave if his

ordinary marginal rate is $32$ percent and his long$-$term capital gains rate is $15$ percent?

b$.$ If Dave's stock price predictions are correct, what are the tax consequences of these transactions to RRK$?$

Complete this question by entering your answers in the tabs below.

Required A

Required B

If Dave's stock price predictions are correct, what are the tax consequences of these transactions to RRK$?$

NOTE: $$30000$ IS NOT THE CORRECT ANSWER FOR PART B VESTING DATE.