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This year, Faro, Incorporated, a calendar year taxpayer, issued 500 shares of its publicly traded...

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Accounting

This year, Faro, Incorporated, a calendar year taxpayer, issued 500 shares of its publicly traded stock as a bonus to its employee, Darius. On the date of issuance, the stock's fair market value was $17,600.
Required:
a. What are the tax consequences to Darius and Faro if Darius's ownership of the stock was fully vested on the date of issuance (the stock was transferable and not subject to risk of forfeiture).
b. What are the tax consequences to Darius and Faro if the terms of the bonus require that Darius must hold the stock five years from the date of issuance. If employment is terminated before that date, the stock must be forfeited back to Faro. Darius made no election with respect to the restricted stock.
Complete this question by entering your answers in the tabs below.
Required A
Required B
What are the tax consequences to Darius and Faro if Darius's ownership of the stock was fully vested on the date of issuance (the stock was transferable and not subject to risk of forfeiture).
Note: Leave no cells blank - be certain to enter "0" wherever required.
\table[[,Amount],[Darius recognized income,],[Faro Incorporated's allowable deduction,]]
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