Which of the following statements regarding the net unrealized appreciation (NUA) portion of employer stock received in a lump-sum distribution by a plan participant is CORRECT?

	The NUA portion of the stock value is taxed at the capital gains rate when the stock is sold
	The portion of the fair market value on the date of distribution that is NUA is tax free to the plan participant
	When the taxpayer receives the employer stock, the stock is taxed as ordinary income when sold
	The NUA on the employer stock is taxed as ordinary income in the year of the distributio