Q1)

The company ESOP buys stock for $15,000 and allocates it to EE Johnsons account. Johnson is in the 26% tax bracket for the entire time discussed in the problem. At retirement 19 years later, the stock is worth $35,000. Johnson receives the stock as a lump sum distribution from the plan. Seven years later, Johnson sells the stock for $50,000. What will Johnsons tax liability be from this transaction?

Question options:

(a )	$2,250
(b )	$5,250
(c )	$9,100
( d)	$13,000
(e )	$3,900