### Accelerate the recognition of income

Assignment Help Macroeconomics
##### Reference no: EM131069585

Luis received 400 shares of his employer's stock as a bonus. He must return the stock to the company if he leaves before the 5-year vesting period ends. The fair market value of the stock at the time it was issued was \$20,000. After five years, the stock vests when it has a fair market value of \$75,000. Two years after vesting, Luis sells the stock for \$100,000.

a. If Luis makes no election, how much income or gain does he recognize (1) when the stock is issued, (2) when the stock vests, and (3) when the stock is sold?

b. If Luis makes an election to accelerate the recognition of income, how much income or gain does he recognize (1) when the stock is issued, (2) when the stock vests, and (3) when the stock is sold?

c. If Luis makes an election to accelerate the recognition of income but he leaves the company after three years, is he eligible for a refund of taxes paid?

#### Questions Cloud

 Economic efficiency perspective : (A) Using what we have learned in class, explain the economic logic underlying (a) and that underlying (b). (B) From an economic efficiency perspective, is either policy (a) or policy (b) preferred? Of course, explain your answer. Law of diminishing returns : "If it were not for the law of diminishing returns, a firm's average cost and average variable cost would not increase in the short run." Do you agree? Explain. Gradual opening of the crack during the loading phase : Plastic deformation at crack tip; no change in crack configuration (i.e. crack opening and crack length); loading phase. Accelerate the recognition of income : If Luis makes an election to accelerate the recognition of income but he leaves the company after three years, is he eligible for a refund of taxes paid? Describe the regulatory additions to your floor plan : Evaluate the impact of legal and regulatory requirements on the development of organizational health care policies related to facility design for your selected facility. Aggregate demand and aggregate supply factors : Explain how one of the following aggregate demand and aggregate supply factors is likely to put upward or downward pressure on inflation in Kenya. Comment on the validity of different fracture mechanics : Comment on the validity of different fracture mechanics parameters Rate of inflation in a country : Identify and explain one government policy that could be used to reduce the rate of inflation in a country, if there was rising inflation.

### Write a Review

#### Describe how an arbitrageur could profit from the situation

Based on the Law of One Price, what is the equilibrium nominal exchange rate between the U.S. dollar and the euro? What is the equilibrium real exchange rate between the U.S. and Europe.Describe how an arbitrageur could profit from this situation.

#### Why is the demand for a mercedes more elastic than

Why is the demand for a Mercedes more elastic than the demand for all autos? Be sure to list at LEAST two reasons for this and explain them.

#### Ellucidate why is it that wages are not dropping

Ellucidate why is it that wages are not dropping instead they are inching upward on a year to year basis.

#### What is the optimum demand

The annual fixed cost for an inspecting and profiling web controller manufacturing company is \$44,000 and variable cost is \$38/unit. If selling price per unit is p = 495 -.05x, what is the company’s range of profitability demand? What is the optimum ..

#### They are offered financing which requires

Jerry and his wife decide this is a good time to buy a house.They have a down payment and need to borrow \$250,000.They are offered financing which requires a 2% loan origination fee and monthly payments of \$1,500 per month for 30 years.what is their ..

Calculates the percent return to the investment in new air facilities to be 12 percent. Will net benefits from resource use increase as a result of construction of new air travel facilities?

#### You are the manager of a firm that produces and markets a

you are the manager of a firm that produces and markets a generic type of soft drink in a competitive market. in

#### What is the national unemployment rate right now and what is

What is the national unemployment rate right now and what is theunemployment rate for the demographic group that best fits adescription of you (age, sex, race) Is it higher or lower than thenational average and why?

#### Find whether inflating or deflating the nominal gdp data

show nominal GDP and an appropriate price index for a group of selected years. Compute real GDP, and indicate in each calculation whether you are inflating or deflating the nominal GDP data. Instructions: Round your answers to two decimal places.

#### Discuss the competitive strategies

Question: Malaysia Airlines is facing tough challenges due to the highly competitive home market and the recent air disasters involving flights MH370 and MH17. Discuss the competitive strategies (in terms of ECONOMICS) that the airline could imple..

#### If fewer u.s. dollars are needed to buy a swiss franc

If fewer U.S. dollars are needed to buy a Swiss franc, then a.  U.S. residents supply more francs b. U.S. residents buy more Swiss goods

#### Influence on important macroeconomic variables

Compare and contrast two different countries during a time period when they experienced financial crises.