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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

image text in transcribedimage text in transcribed 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 $50,000. 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 $77,500. 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. 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. Complete this question by entering your answers in the tabs below. 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 filed a timely election in 2017 to accelerate income recognition with respect to the 2,000 shares of restricted stock

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