Reference no: EM132953639

Questions -

Q1. Tom recently received 2,040 shares of restricted stock from his employer, Independence Corporation, when the share price was $11 per share. Tom's restricted shares vested three years later when the market price was $15. Tom held the shares for a little more than a year and sold them when the market price was $13. What is the amount of Tom's income or loss on the sale?

a-$4,080 gain.

b-$0.

c-$4,080 loss.

d-$2,040 loss.

Q2. Ashburn reported a $105,150 net §1231 gain in year 6. Assuming Ashburn reported $57,000 of unrecaptured §1231 losses during years 1-5, what amount of Ashburn's net §1231 gain for year 6, if any, is treated as ordinary income?

a-$0.

b-$57,000.

c-$105,150.

d-$48,150.

e-None of the choices are correct.