Required information

Problem $12-37($LO $12-2)($Static$)$

$[$The following information applies to the questions displayed below.$]$

On January $1,$ year $1,$ Tyra started working for Hatch Corporation. New employees must choose immediately between

receiving $7$ NQOs $($each NQO provides the right to purchase for $$5$ per share $10$ shares of Hatch stock$)$ or $50$ restricted

shares. Hatch's stock price is $$5$ on Tyra's start date. Either form of equity$-$based compensation will vest in two years. Tyra

believes that the stock will be worth $$15$ per share in two years and $$25$ in four years, when she will sell the stock. Tyra's

marginal tax rate is $32$ percent and her long$-$term capital gains rate is $15$ percent. Assuming that Tyra's price predictions

are correct, answer the following questions $($ignore present value, and use nominal dollars$)$:

Note: List cash outflows as negative amounts. Leave no answers blank. Enter zero if applicable.

Problem $12-37$ Part c $($Static$)$

c$.$ What are the cash$-$flow effects to Tyra in the year she receives the restricted stock, in the year the stock vests, and in the year she

sells the stock if she makes an $83($b$)$ election?

Answer is complete but not entirely correct.