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Wen was recently granted 1,000 shares of restricted stock from his employer when the share price

Wen was recently granted 1,000 shares of restricted stock from his employer when the share price

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wen was recently granted 1,000 shares of restricted stock from his employer when the share price was $8 per share. The restricted shares vested three years later when the market price was $11. Wen then held the shares for a little more than a year after vesting and sold them when the market price was $16. Assuming Wen made a section 83(b) election, what is the amount of gain or loss on the restricted stock on the day he sold it? $5,000 LTCG $3,000 STCG $8,000 LTCG $3,000 LTCL
Transcribed Image Text:Wen was recently granted 1,000 shares of restricted stock from his employer when the share price was $8 per share. The restricted shares vested three years later when the market price was $11. Wen then held the shares for a little more than a year after vesting and sold them when the market price was $16. Assuming Wen made a section 83(b) election, what is the amount of gain or loss on the restricted stock on the day he sold it? $5,000 LTCG $3,000 STCG $8,000 LTCG $3,000 LTCL
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