Rick Recently Received 600 Shares of Restricted Stock from His

Essay

Rick recently received 600 shares of restricted stock from his employer, Crazy Corporation, when the share price was $25 per share. Rick's restricted shares vested three years later, when the market price was $32. Rick held the shares for a little more than a year after vesting and sold them when the market price was $35. What is the amount of Rick's compensation income if Rick made an election under section 83(b)when the stock was granted? Assuming a marginal tax rate of 35 percent, what is the amount of Rick's ordinary income amount and tax liability at the time of the income inclusion?