On September 30, 2017, Stalling, Incorporated issued 2,000 shares of its publicly traded stock as compensation to its employee, Harry. On the date of issuance, the stock's fair market value was $47,000. Under the terms of his 2017 compensation contract, Harry could not dispose of the stock before October 1, 2022, and if employment with Stalling was terminated before that date, the stock is returned to the corporation. On October 1, 2022, Harry, who still worked for Stalling, sold all 2,000 shares for $71,500. Stalling, Incorporated uses a fiscal year ending August 31 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 2,000 shares issued to Harry if: a. Harry made no election with respect to the restricted stock in 2017. b. Harry filed a timely election in 2017 to accelerate income recognition with respect to the 2,000 shares of restricted stock. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount of Stalling's deduction and the taxable year in which Stalling is allowed the deduction with respect to the 2,000 shares issued to Harry if Harry made no election with respect to the restricted stock in 2017. Stalling's allowable deduction Amount Taxable year Required A Required B > Problem 15-11 (Algo) [LO 15-4] This year, Faro, Incorporated, a calendar year taxpayer, issued 500 shares of its publicly traded stock as a bonus to its employee, Darius. On the date of issuance, the stock's fair market value was $16,850. Required: a. What are the tax consequences to Darius and Faro if Darius's ownership of the stock was fully vested on the date of issuance (the stock was transferable and not subject to risk of forfeiture). b. What are the tax consequences to Darius and Faro if Darius cannot dispose of the stock before July 1, 2026. If employment is terminated before that date, the stock must be forfeited back to Faro. Darius made no election with respect to the restricted stock Complete this question by entering your answers in the tabs below. Required A Required B What are the tax consequences to Darius and Faro if Darius cannot dispose of the stock before July 1, 2026. If employment is terminated before that date, the stock must be forfeited back to Faro. Darius made no election with respect to the restricted stock. Mrs. Doyle's recognized income Faro Incorporated's allowable deduction Amount