Required information $(($This question must be filled out on a tax form$1040$ SCHEDU D$)$ Please make sure to put all numbers in the correct box's$)$ Pratt is ready to graduate and leave College Park. His future employer $($Ferndale Corp.$)$ offers the following four compensation packages from which Pratt may choose. Pratt will start working for Ferndale on January $1,$ year $1.$ Benefit Description Option $1$ Option $2$ Option $3$ Option $4$ Salary $$60,000$ $ $50,000$ $ $45,000$ $ $45,000$ Health insurance No coverage $5,0005,0005,000$ Restricted stock $001,000$ shares $0$ NQOs $000100$ options Assume that the restricted stock is $1,000$ shares that trade at $$5$ per share on the grant date $($January $1,$ year $1)$ and are expected to be worth $$10$ per share on the vesting date at the end of year $1.$ Each NQO allows the employee to purchase $10$ shares at a $$5$ strike price$).$ The stock trades at $$5$ per share on the grant date $($January $1,$ year $1)$ and is expected to be worth $$10$ per share on the vesting date at the end of year $1.$ Also assume that Pratt spends on average $$3,000$ on health$-$related costs that would be covered by insurance if he had coverage. Assume that Pratt$$s marginal tax rate is $35$ percent. Assume that Pratt spends $$3,000$ in after$-$tax dollars for health expenses when he doesn$$t have health insurance coverage $($treat this as an outflow$),$ and that there is no effect when he has health insurance coverage. $($Ignore FICA taxes and time value of money considerations$).($Leave no answers blank. Enter zero if applicable.$)$ c$.$ Assuming Pratt chooses Option $3$ and sells the stock on the vesting date $($on the last day of year $1),$ complete Pratt$$s Schedule D and Form $8949$ for the sale of the restricted stock. Pratt's social security number: $412-34-5670($Input all the values as positive numbers. Use $2017$ tax rules regardless of year on tax form.$)$