Tom recently received 2,000 shares of restricted stock from his employer, Independence Corporation, when the share price was $10 per share. Tom's restricted shares vested three years later when the market price was $14. Tom held the shares for a little more than a year and sold them when the market price was $12. What is the amount of Tom's income or loss on the sale?
A) $0.
B) $2,000 loss.
C) $4,000 gain.
D) $4,000 loss.

Question

Quizplus · Accepted Answer

$4,000 loss is $24,000 (2,000 shares × $12 market value on sale date) of sales proceeds less $28,000 (2,000 shares × $14 market price on vesting date) basis.

Tom Recently Received 2,000 Shares of Restricted Stock from His