[The following information applies to the questions displayed below.] On January 1, year 1, Dave received 1,250 shares of restricted stock from his employer, RRK Corporation. On that c stock price was $27 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted s 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 fund the purchase of a new home. Dave predicts the share price of RRK will be $31 per share when his shares vest will be $44 per share when he sells them. Assume that Dave's price predictions are correct and answer the followin questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dolla value. Enter all amounts as positive values.) What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent?
[The following information applies to the questions displayed below.] On January 1, year 1, Dave received 1,250 shares of restricted stock from his employer, RRK Corporation. On that c stock price was $27 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted s 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 fund the purchase of a new home. Dave predicts the share price of RRK will be $31 per share when his shares vest will be $44 per share when he sells them. Assume that Dave's price predictions are correct and answer the followin questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dolla value. Enter all amounts as positive values.) What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent?
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 52P
Related questions
Question
Subject: acounting
![Required information
[The following information applies to the questions displayed below.]
On January 1, year 1, Dave received 1,250 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 $31 per share when his shares vest and
will be $44 per share when he sells them. Assume that Dave's price predictions are correct and answer the following
questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar
value. Enter all amounts as positive values.)
a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent?
Answer is complete but not entirely correct.
Grant date
Vesting date
Sale date
$
$
$
Taxes
Due
10,800
0
2,438](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472621be-5969-4a54-b52e-f83201e6e65c%2F86ffb43c-0f88-4fc7-a16d-298481ea778b%2Fcc33png_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On January 1, year 1, Dave received 1,250 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 $31 per share when his shares vest and
will be $44 per share when he sells them. Assume that Dave's price predictions are correct and answer the following
questions: (Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar
value. Enter all amounts as positive values.)
a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent?
Answer is complete but not entirely correct.
Grant date
Vesting date
Sale date
$
$
$
Taxes
Due
10,800
0
2,438
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