Determine stock bonus plan


Marcus, age 61, is a participant in a stock bonus plan. The value of the employer stock contributions to the plan over the course of his participation totaled $165,000. On December 1, 2011, Marcus takes a full distribution of the employer stock from the plan at a value of $550,000. Fourteen months later, Marcus sells all of the stock for $400,000. Which of the following statements is true?

A. Marcus has a long-term capital gain of $385,000 for 2011.
B. Marcus has ordinary income of $165,000 in 2011.
C. Marcus has a long-term capital loss of $150,000 in 2013.
D. Marcus has ordinary income of $165,000 and long-term capital gain of $385,000 in 2011.

 

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Finance Basics: Determine stock bonus plan
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