Bob was give a 20 % interest in his corporation. Apple, Inc the stock oh which w
ID: 2474309 • Letter: B
Question
Bob was give a 20 % interest in his corporation. Apple, Inc the stock oh which was worth 350000 for past, present, and future services. The stock was restricted, in that he could not transfer the interest unless he is employed for 5 years when the stock is expected to be worth 500000. Which of the following is incorrect:
a. if the 83b election is made, bob will import income of 60000 right away.
b. gengeral rule, bob will have income estimated to be 200000 in five years
c. Apple inc gets a deduction int eh amount and time that bob reports income
d. bob fails to work the full five years than he is entitlted to a loss deduction equal to his basis of his stock
Explanation / Answer
C - Apple inc gets a deduction int eh amount and time that bob reports income