Question: On January 1 , year 1 , Dave received 1 , 4 0 0 shares of restricted stock from his employec, RRK Corporation. On that

On January 1, year 1, Dave received 1,400 shares of restricted stock from his employec, RRK Corporation. On that dite, the mock price was $5 per share. On receiling the restricted snock, Dave made the s3fol election. Otrels 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 $35 per share when his shares west and $60 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions-
Note: Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values.
Requirect:
a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-4erm capital gains rate is 15 percent?
\table[[,Trues Cue],[Grant date,],[Venting date,$
On January 1 , year 1 , Dave received 1 , 4 0 0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!