Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on september 30, 2014, stalling inc. issued 2,000

On September 30, 2014, Stalling Inc. issued 2,000 shares of its publicly traded stock as...

70.2K

Verified Solution

Question

Accounting

On September 30, 2014, Stalling Inc. issued 2,000 shares of its publicly traded stock as compensation to its employee, Mr. Harry. On the date of issuance, the stocks fair market value was $42,000. Under the terms of his 2014 compensation contract, Mr. Harry couldnt dispose of the stock before October 1, 2018, and if he terminated his employment with Stalling before that date, he had to return the stock to the corporation. On October 1, 2018, Mr. Harry, who still worked for Stalling, sold all 2,000 shares for $61,500.

a. Assume that Mr. Harry made no election with respect to the restricted stock in 2014. How much compensation income does Mr. Harry recognize in 2018 because the restrictions lapsed? How much gain or loss does he recognize on sale of the stock?

b. Assume that Mr. Harry filed a timely election in 2014 to accelerate income recognition with respect to the 2,000 shares of restricted stock. How much compensation income does Mr. Harry recognize in 2018 because the restrictions lapsed? How much gain or loss does he recognize on sale of the stock?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the following sequence of numbers: 0.12 0.01 0.23 0.28 0.89 0.31 0.64 0.28 0.83 0.93 0.99 0.15 0.33 0.35 0.91 0.41 0.60 0.27 0.75 0.88 0.68 0.49 0.05 0.43 0.95 0.58 0.19 0.36 0.69 0.87 Test whether the 3rd, 8th, 13th, and so on, numbers...

Statistics
Q

Most major airlines allow passengers to carry two pieces of luggage (of a certain maximum size)...

Basic Math
Q

The following table presents the orders of Samson Company for the last 36 months (3 years). Month Order...

General Management
Q

A rectangular prism has a height of 12 feet. The cross section at 8 feet...

Basic Math
Q

Convert 23 to a numeral in base 2 23

Calculus
Q

Find the inverse of the function.y = 8x 6Select one:a. 3x/4b. 4x/3c. x+6/8d. X-6/8

Algebra
Q

Do you think contingent gains should be disclosed in the financial statements? Defend your position.

Accounting
Q

An advantage of Simple -IRA plans is?

Accounting
Q

Which of the following would be appropriately placed in the Investing Section? Select one: a....

Accounting
Q

Why are internal threats a major challenge for organizations? How can internal threats be minimized?

Accounting
Q

Executive officers of Stoneham Company are wrestling with their budget for the next year. The...

Accounting
Q

Please can you answer the other questions? 7 The Production Cost per Unit () b...

Accounting