Silas’ employer, Missoula Corporation, has given Silas a grant of 2,000 shares worth of Restricted Stock. On the grant date, Missoula’s shares were trading at $18 per share. Two years later, when the shares vest, they are worth $24 per share. Silas keeps the shares for 1 year, then sells them for $30 per share. Silas elects the 83b election. Silas is in the 24% tax bracket for ordinary income and 15% tax bracket for capital gains. Calculate the amount of tax Silas will owe for the sale in the year he sells his 2,000 shares of Missoula stock.
Silas’ employer, Missoula Corporation, has given Silas a grant of 2,000 shares worth of Restricted Stock. On the grant date, Missoula’s shares were trading at $18 per share. Two years later, when the shares vest, they are worth $24 per share. Silas keeps the shares for 1 year, then sells them for $30 per share. Silas elects the 83b election. Silas is in the 24% tax bracket for ordinary income and 15% tax bracket for capital gains. Calculate the amount of tax Silas will owe for the sale in the year he sells his 2,000 shares of Missoula stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Silas’ employer, Missoula Corporation, has given Silas a grant of 2,000 shares worth of Restricted Stock. On the grant date, Missoula’s shares were trading at $18 per share. Two years later, when the shares vest, they are worth $24 per share. Silas keeps the shares for 1 year, then sells them for $30 per share. Silas elects the 83b election. Silas is in the 24% tax bracket for ordinary income and 15%
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