On July 1, 2013, Red Corporation Sold 100 of Its

Essay

On July 1, 2013, Red Corporation sold 100 of its common shares (worth $15 per share) to its employee Bobby for $5 per share. The sale was subject to Bobby's agreement to resell the shares to the corporation for $5 per share if his employment is terminated within the following four years. The shares were valued at $26 per share on July 1, 2017. He sold the shares for $30 per share on September 15, 2017. No special election under § 83(b) was made. Identify the correct answer.