On June 30, 2016, Gruen Inc

On June 30, 2016, Gruen Inc. issued 2,000 shares of its publicly traded stock as compensation to its employee, Stu Barnes. On date of issuance, the stock's fair market value was $13,500. Under the terms of his employment contract, Mr. Barnes couldn't dispose of the stock before January 1, 2020, and if he terminated his employment with Gruen before that date, he had to forfeit the stock back to Gruen. Mr. Barnes made no election with respect to the restricted stock in 2016. On January 1, 2020, Mr. Barnes, who was still a Gruen employee, sold all 2,000 shares for $47,500. What are the 2020 tax consequences to Mr. Barnes?

A) He recognizes $47,500 ordinary income and zero capital gain on sale of the stock.
B) He recognizes zero ordinary income and $47,500 capital gain on sale of the stock.
C) He recognizes zero ordinary income and $13,500 capital gain on sale of the stock.
D) He recognizes $34,000 ordinary income and $13,500 capital gain in sale of the stock.