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Please include work I want understand how to do this problem. Thank you On January 1, year 1, Dave received 1,000 shares of restricted stock
Please include work I want understand how to do this problem. Thank you
On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was \$7 per share. On receiving the restricted stock, Dave made the 83(b) election. 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 $40 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions: Note: Enter all amounts as positive values. Leave no answers blank. Enter zero if applicable. Required: a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent? b. What are the tax consequences of these transactions to RRK? Complete this question by entering your answers in the tabs below. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent? On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was \$7 per share. On receiving the restricted stock, Dave made the 83(b) election. 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 $40 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions: Note: Enter all amounts as positive values. Leave no answers blank. Enter zero if applicable. Required: a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent? b. What are the tax consequences of these transactions to RRK? Complete this question by entering your answers in the tabs below. What are the tax consequences of these transactions to RRKStep by Step Solution
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