Tom Recently Received 2,000 Shares of Restricted Stock from His

Tom recently received 2,000 shares of restricted stock from his employer,Independence Corporation,when the share price was $10 per share.Tom's restricted shares vested three years later when the market price was $14.Tom held the shares for a little more than a year and sold them when the market price was $20.What is the amount of Tom's income or loss on the vesting date?

A) $0.
B) $10,000.
C) $20,000.
D) $28,000.2,000 × $14 (market price on vesting date) .

Correct Answer:

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