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 $38 per share when his shares vest and $43 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions:
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- Required information [The following information applies to the questions displayed below.] On January 1, year 1, Dave received 2,400 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $16 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 $40 per share when his shares vest and will be $50 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…On January 1, year 1, Dave received 2,200 restricted shares from his employer, RRK Corporation. On that date, the stock price was $18 per share. On receiving the 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 $29 when his shares vest and will be $56 per share when he sells them. Assume that Dave's predictions are correct and answer the following question. What are the consequences of these transactions to RRK? Grant Date $ Vesting Date $ Sale Date $Required information [The following information applies to the questions displayed below.] On January 1, year 1, Dave received 1,100 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $26 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 $46 per share when his shares vest and will be $49 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…
- ! Required information [The following information applies to the questions displayed below.] On January 1, year 1, Dave received 900 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $11 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 $43 per share when his shares vest and will be $55 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.) b. If Dave's stock price predictions are correct, what are the tax consequences of these transactions to RRK? Grant date Vesting date Sale date Tax…On January 1, year 1, Dave received 1,550 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $14 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 $38 per share when his shares vest and $46 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions: Note: Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values. Required: 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? b. What are the tax consequences of these transactions to RRK? Complete this question by entering your…On January 1, year 1, Dave received 1,800 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $10 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 $45 per share when his shares vest and will be $64 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.) b. If Dave's stock price predictions are correct, what are the tax consequences of these transactions to RRK? > Answer is complete but not entirely correct. lax consequences 18,000 X 0♥ 0✓ Grant date Vesting date Sale date $ $ Prev 3 of 9…
- 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 help 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.) b. If Dave's stock price predictions are correct, what are the tax consequences of these transactions to RRK? X Answer is not complete. Tax consequences Grant date Vesting date Sale dateOn 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 help 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.) b. If Dave's stock price predictions are correct, what are the tax consequences of these transactions to RRK? Tax consequences Grant date Vesting date $ Sale dateOn 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 help fund the purchase of a new home. Dave predicts the share price of RRK will be $28 per share when his shares vest and $41 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions: Note: Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values. Required: 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? b. What are the tax consequences of these transactions to RRK? Complete this question by entering your…
- 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 will be $40 per share when he sells them. Assume that Dave’s price predictions are correct and answer the following questions: (Enter all amounts as positive values. Leave no answers blank. Enter zero if applicable.) Q. 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 on rant date: ? taxes due on vesting date:? taxes due on sale date: ?On January 1, year 1, Dave received 2,200 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 help fund the purchase of a new home. Dave predicts the share price of RRK will be $29 per share when his shares vest and will be $56 per share when he sells them. Assume that Dave’s price predictions are correct and answer the following questions: b. If Dave’s stock price predictions are correct, what are the tax consequences of these transactions to RRK?Deborah, who is employed by Rogers Public Co. Ltd., was granted an option in year one to purchase up to 10,000 common shares at $14 after completion of her fifth year of employment. The FMV of the common shares at the time of granting the right was $12. She does not have any other shares. During Deborah's seventh year of employment, she decided to exercise part of her right and purchased 5,000 shares with a FMV of $15 as at that date. Three years later, Deborah sold the shares for $25 per share. What are the tax implications of each of the above transactions on: a) The date of grant of the options b) The date the option is exercised c) The date the shares are sold