Required information [The following information applies to the questions displayed below.] On January 1, year 1, Dave received 2,500 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $13 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 $33 per share when his shares vest and $54 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions: Note: 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. What are the tax consequences of these transactions to RRK? Grant date Vesting date Sale date Tax consequences
Required information [The following information applies to the questions displayed below.] On January 1, year 1, Dave received 2,500 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $13 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 $33 per share when his shares vest and $54 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions: Note: 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. What are the tax consequences of these transactions to RRK? Grant date Vesting date Sale date Tax consequences
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 66P
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
On January 1, year 1, Dave received 2,500 shares of restricted stock from his employer, RRK Corporation. On that date, the
stock price was $13 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 $33 per share when his shares vest and
$54 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions:
Note: 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. What are the tax consequences of these transactions to RRK?
Grant date
Vesting date
Sale date
Tax
consequences](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F911e1e7f-3348-4cd7-8d2e-b6be87c37cad%2F1317bf41-ecc3-4dfd-9234-a2c6f4732c91%2Fhy4ivh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On January 1, year 1, Dave received 2,500 shares of restricted stock from his employer, RRK Corporation. On that date, the
stock price was $13 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 $33 per share when his shares vest and
$54 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions:
Note: 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. What are the tax consequences of these transactions to RRK?
Grant date
Vesting date
Sale date
Tax
consequences
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