Required information Problem 12-34 (LO 12-2) (Static) [The following information applies to the questions displayed below.] On January 1, year 1, Dave received 1,000 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $7 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 $30 per share when his shares vest and $40 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions: Note: Enter all amounts as positive values. Leave no answers blank. Enter zero if applicable. Problem 12-34 Part b (Static) b. What are the tax consequences of these transactions to RRK