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. ?
