Problem 15-11 (Algo) [LO 15-4] This year, Faro, Incorporated, a calendar year taxpayer, issued 500 shares...

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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 $17,400. 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. 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 $17,400. 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.