Stevie recently received 1,000 shares of restricted stock from her employer, Nicks Corporation, when the share price was $8 per share. Stevie's restricted shares vested three years later when the market price was $11. Stevie held the shares for a little more than a year and sold them when the market price was $16. What is the amount of Stevie's ordinary income with respect to the restricted stock?
A)$0
B)$5,000
C)$8,000
D)$11,000

Question

Quizplus · Accepted Answer

The ordinary income is calculated based on the market price at the time the restricted stock vests. Therefore, Stevie's ordinary income is 1,000 shares x $11 = $11,000.

Stevie Recently Received 1,000 Shares of Restricted Stock from Her