Complete the problems listed below relating to BIO-SCI Corp for its employee, Jone Lee. For each...

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Accounting

Complete the problems listed below relating to BIO-SCI Corp forits employee, Jone Lee. For each event of each problem, indicate ifthis is a taxable event, amount of taxable income and character ofthe income. Also indicate the starting date for the holding periodof the underlying stock. (Note: Ignore AMT for all problems)
1. BIO-SCI issued RESTRICTEDStock(Cliff Vesting effective June 15, 2014) to Jone asfollows:
a. July 1, 2013 - Granted 200,000shares (FMV = $10/share). ?
b. June 15, 2014 – Restrictions Lapse(FMV = $16/share) ?
c. October 20, 2015 – Sold 100,00shares of stock (Proceeds = ?$21/share) ?
d. If Jone made an Section 83(b)election on July 1, 2013 for all 200,000 ?shares, recomputed youranswers to a, b, and c. ?

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3.7 Ratings (356 Votes)

ISO is one of the employee stock optionsISO gives employee a tax incentive by allowing one to pay ordinary income tax at exercise of options Taxable event taxable event under ISO Employee does not have to pay ordinary Income Tax at exercise of options the difference between fair market value and exercise price is subject to an AMT adjustment On the date of See Answer

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