Question
Pooh recently received 500 shares of restricted stock from his employer, Disney Corporation, when the share price was $5 per share. Pooh's restricted shares vested
Pooh recently received 500 shares of restricted stock from his employer, Disney Corporation, when the share price was $5 per share. Pooh's restricted shares vested three years later, when the market price was $12. Pooh held the shares for a little more than a year and sold them when the market price was $15. What is the amount of Pooh's income and tax on all of the dates below. Assume a marginal tax rate of 32 percent and a preferential rate of 15%. Provide Pooh's income and tax consequences assuming (a) an 83(b) election is made and (b) an 83(b) election is not made...?
83(b) Election | Income | Tax |
Grant Date | ||
Vesting Date | ||
Sale Date |
NO 83(b) Election | Income | Tax |
Grant Date | ||
Vesting Date | ||
Sale Date |
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