Question

Required Informatlon [The following information applies to the questions displayed below On January 1, year 1, Dave received 1,200 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $27 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 $41 per share when his shares vest and will be $47 per share when he sells them. Assume that Dave's price predictions are correct and answer the following questions: (Leave n。answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as posltlve values.) o. If Dave's stock price predictions are correct, What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-tern capital gains rate is 15 percent? Taxes Due Grant date Vesting date b. If Dave's stock price predictions are correct, What are the tax consequences of these transactions to RRK if its marginal rate is 21 percent? Tax Benefit Grant date Vesting date Sale date

Answer 1

tivem data Dave. rece ved ,20 0 shane with 4U1 vestana obe su7 determina by a.percemtage op income ta bases a) DetailS es plana o of each Ehare 1) X (2) Tat is restioa Data Cリ orderi nay to Rate CI) Ta Due ato vesti ''术e amount op -laxes paid at the time DR Vesting is牛14,760

compute the o Detaii3 amount Fplanction adjusted os s (1) Longterm Capitalauり 411000 FrOm(3) (1)-(*) 415,qoD tat e ( IST uoDX 15% -tke ameuht oP toes deu the time o sal s2,3D cDmptte the tax labilit oP R co DetailS eeplant'on ,200 Each Shcsa (İ %.lcfna income or 200 vestina chit o !) Od t nørd MoM11, natta R. rate ろ2./ C Tax due at vestin 14, 76 0 The amout op tax bemept Tecelved byP