you Transcribed Image Text: On January 1, year 1, Dave received 2,750 shares of restricted stock from his employer, RRK Corporation

explain every step. you Transcribed Image Text: On January 1, year 1, Dave received 2,750 shares of restricted stock from his employer, RRK Corporation. On that date, the
stock price was $18 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
fund the purchase of a new home. Dave predicts the share price of RRK will be $28 per share when his shares vest and
will be $41 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?
Taxes Due
Grant date
Vesting date
Sale date

-25-


Buy plagiarism free, original and professional custom paper online now at a cheaper price. Submit your order proudly with us



Essay Hope