Employer stock from the company stock bonus plan

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Carrie retired last week and received a lump­sum distribution of her employer's stock from the company's stock bonus plan. The value of the shares at the time of contribution varied. The 1st contribution was 2,500 shares at $10 per share. The 2nd consisted of 2,500 shares at $13 per share, and the last 2,500 shares were valued at $15 per share. All stock was contributed by the employer, and the current value of the stock on the date of her retirement is $22 per share.

Because she is only 63 years old today, she wants to wait to sell the shares until she is 66. How much of the lump­sum distribution should Carrie report on her income tax return in the year of her retirement?

Reference no: EM131859466

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