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on may 1, year 1, anna received 5,400 shares of restricted stock from her employer, jarbal corporation. on that date, the stock price was $5 per share. on receiving the restricted stock, anna made an 83(b) election. anna's restricted shares will all vest on may 1, year 3. after the shares vest, she intends to sell them immediately to purchase a condo. true to her plan, anna sold the shares immediately after they vested. note: leave no answers blank. enter zero if applicable. problem 12-36 part a (algo) a. what is anna's ordinary income in year 1?

Sagot :

Anna's ordinary income in year 1 is $27,000 based on the 5,400 shares that anna received from her employer with the stock price of $5 / share.

What is ordinary income?

It is any type of income that's taxable at ordinary rates. Few examples of ordinary income salaries, tips, bonuses, commissions, rents, royalties, short-term capital gains, unqualified dividends, and interest income. All these examples are income that taxed at U.S marginal tax rates.

From the question given :

Number of shares that Anna received = 5,400

stock price = $5

Therefore, Anna's ordinary income

= shares acquired * fair market value

= 5,400 shares * $5

= $27,000

So, Anna's ordinary income in year 1 will be $27,000.

Learn more about ordinary income https://brainly.com/question/28520249

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