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. Assuming Stevie made a section 83(b) election, 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

$8,000 (1,000 shares × $8 market price on grant date).

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