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On September 3 0 , 2 0 1 8 , Stalling, Incorporated issued 2 , 0 0 0 shares of its publicly traded stock as
On September Stalling, Incorporated issued shares of its publicly traded stock as compensation to its employee,
Harry. On the date of issuance, the stock's fair market value was $ Under the terms of his compensation contract, Harry
could not dispose of the stock before October and if employment with Stalling was terminated before that date, the stock is
returned to the corporation. On October Harry, who still worked for Stalling, sold all shares for $ Stalling,
Incorporated uses a fiscal year ending August for tax purposes.
Required:
Determine the amount of Stalling's deduction and the taxable year in which Stalling is allowed the deduction with respect to the
shares issued to Harry if:
a Harry made no election with respect to the restricted stock in
b Harry filed a timely election in to accelerate income recognition with respect to the shares of restricted stock.
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Determine the amount of Stalling's deduction and the taxable year in which Stalling is allowed the deduction with respect to
the shares issued to Harry if Harry made no election with respect to the restricted stock in
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