An employee who receives restricted stock as compensation from a corporate employer must include the stock's fair market value in gross income in the year of receipt, even though the employee's ownership rights in the stock are nonvested.
Answer the following statement true (T) or false (F)
False
Under the general rule, the employee would not recognize income until the year in which his ownership rights are fully vested (i.e. the restrictions lapse).
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All long-term investments are listed on the balance sheet at fair value
Indicate whether the statement is true or false
All of the following are a component of comprehensive income except
a. unrealized gains and losses on trading securities. b. foreign currency translation adjustment. c. deferred gains and losses on derivative financial instruments. d. change in the minimum pension liability.
Which of the following is/are true concerning convertible bonds or convertible preferred stock?
a. Convertible bonds and convertible preferred stock permit the owner either to hold the security as a bond or preferred stock or to convert the security into shares of common stock. b. The owner cannot detach and transfer, or separately exercise, the conversion option. c. The issue price of a convertible bond or convertible preferred stock is payment for both debt or preferred stock and for the conversion option, but no one can observe the fair value of these separate components. d. choices a and b, only. e. choices a, b, and c.
By lowering the discount rate, the Federal Reserve
A. discourages commercial banks from lending. B. encourages commercial banks to borrow reserves. C. discourages depositors from withdrawing funds. D. contracts the money supply.