Wen was recently granted 1,000 shares of restricted stock from his employer when the share price
Wen was recently granted 1,000 shares of restricted stock from his employer when the share price
Chapter22: S Corporations
Section: Chapter Questions
Problem 51P
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Transcribed Image Text:Wen was recently granted 1,000
shares of restricted stock from his
employer when the share price
was $8 per share. The restricted
shares vested three years later
when the market price was $11.
Wen then held the shares for a
little more than a year after
vesting and sold them when the
market price was $16. Assuming
Wen made a section 83(b)
election, what is the amount of
gain or loss on the restricted stock
on the day he sold it?
$5,000 LTCG
$3,000 STCG
$8,000 LTCG
$3,000 LTCL
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