Five years ago, Bob retired from Main, Inc., a national iron manufacturer. When Bob retired,...
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Five years ago, Bob retired from Main, Inc., a national iron manufacturer. When Bob retired, he had shares of Main, Inc. stock in his stock bonus plan. Main, Inc. took deductions equal to $ per share for the contributions made on Bobs behalf. At his retirement, Bob took a lump sum distribution of the employer stock. The fair market value of the stock at distribution was $ per share. On May th of this year, Bob sold the stock for $ per share. Which of the following will Bob report on his tax return at the date he sells the Main, Inc. stock? a $ of ordinary income, $ of shortterm capital gain, $ of longterm capital gain. b $ of ordinary income, $ of shortterm capital gain. c $ of ordinary income, $ longterm capital gain. d $ of ordinary income.
Five years ago, Bob retired from Main, Inc., a national iron manufacturer. When Bob retired, he
had shares of Main, Inc. stock in his stock bonus plan. Main, Inc. took deductions equal to
$ per share for the contributions made on Bobs behalf. At his retirement, Bob took a lump
sum distribution of the employer stock. The fair market value of the stock at distribution was $
per share. On May th of this year, Bob sold the stock for $ per share. Which of the following
will Bob report on his tax return at the date he sells the Main, Inc. stock?
a $ of ordinary income, $ of shortterm capital gain, $ of longterm capital gain.
b $ of ordinary income, $ of shortterm capital gain.
c $ of ordinary income, $ longterm capital gain.
d $ of ordinary income.
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