Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, year 1, Dave received 1,450 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $9 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $43 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.) a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 151 percent? Grant date Vesting date Sale date Taxes Due On January 1, year 1, Dave received 1,450 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $9 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $43 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.) b. If Dave's stock price predictions are correct, What are the tax consequences of these transactions to RRK? Grant date Vesting date Tax Benefit Sale date

On January 1, year 1, Dave received 1,450 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $9 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $43 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.) a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 151 percent? Grant date Vesting date Sale date Taxes Due On January 1, year 1, Dave received 1,450 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $9 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $43 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.) b. If Dave's stock price predictions are correct, What are the tax consequences of these transactions to RRK? Grant date Vesting date Tax Benefit Sale date

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please don't use any AI.

It's strictly prohibited.

Help me with both please thanks 

On January 1, year 1, Dave received 1,450 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $9 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $43 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.) a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 151 percent? Grant date Vesting date Sale date Taxes Due
Transcribed Image Text:On January 1, year 1, Dave received 1,450 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $9 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $43 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.) a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 151 percent? Grant date Vesting date Sale date Taxes Due
On January 1, year 1, Dave received 1,450 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $9 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $43 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.) b. If Dave's stock price predictions are correct, What are the tax consequences of these transactions to RRK? Grant date Vesting date Tax Benefit Sale date
Transcribed Image Text:On January 1, year 1, Dave received 1,450 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $9 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2. He intends to hold the shares until the end of year 4 when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $43 per share when his shares vest and will be $53 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.) b. If Dave's stock price predictions are correct, What are the tax consequences of these transactions to RRK? Grant date Vesting date Tax Benefit Sale date
Expert Solution
steps

Step by step

Solved in 1 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS