Pony,Inc. ,issues restricted stock to employees in July 2014,with a two-year vesting period and an SRF.An employee must remain a full-time employee of Pony for two years after the restricted stock is issued.The stock is trading at $10 per share when the stock is issued.An employee,Sam,decides to make the § 83(b)election with his 1,000 shares.At the end of 2014,the stock is selling for $13 per share.What amount,if any,can Pony take as a compensation deduction?
A)$0.
B)$10,000 in 2014.
C)$13,000 in 2014.
D)$10,000 when stock is sold.
E)$13,000 when stock is sold.

Question

Quizplus · Accepted Answer

Pony can deduct the same amount at the same time the employee recognizes income $10,000 ($10 × 1,000).

Pony,Inc ,Issues Restricted Stock to Employees in July 2014,with a Two-Year