On january 1, year 1, dave received 1,000 shares of restricted stock from his employer, rrk corporation. on that date, the stock price was $7 per share. dave’s restricted shares will vest at the end of year 2. he intends to hold the shares until the end of year 4 when he intends to sell them to fund the purchase of a new home. dave predicts the share price of rrk will be $30 per share when his shares vest and will be $40 per share when he sells them. (leave no answer blank. enter zero if applicable. input all amounts as positive values.) problem 12-33 part b b. if dave’s stock price predictions are correct, what are the tax consequences of these transactions to rrk?

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer