Federal Tax Accounting

William B. Good became an employee of GOODIE Co. Inc., Inc., a privately held firm. On January 15, 2017, William B. Good was allowed to buy 20,000 shares of GOODIE Co. Inc. stock for $40,000 dollars. When William B. Good bought the stock, each share was worth $2. GOODIE Co. Inc. retained the right to repurchase each share for $2 original purchase price if William B. Good leaves GOODIE Co. Inc. at any time during the next two years for any reason. GOODIE Co. Inc. stock increased to $5 per share in January 15, 2019 when the two year restriction ended. William B. Good sold the stock on September 30, 2019 for $9 per share, after the announcement of a new patent by GOODIE Co. Inc.. Advise William B. Good roughly how much tax she must pay and for what year(s). Assume William B. Good is in the 35% tax bracket for ordinary income and 15% for long term capital gains.

Thoroughly research the above situation and prepare a detailed Tax File Memorandum to support your research, findings, conclusion, and application to Mr. Good.

Advise Mr. Good by a detailed Client Letter of your findings and conclusion.
RP2. Stock purchased by an employee

William B. Good became an employee of GOODIE Co. Inc., Inc., a privately held firm. On January 15, 2017, William B. Good was allowed to buy 20,000 shares of GOODIE Co. Inc. stock for $40,000 dollars. When William B. Good bought the stock, each share was worth $2. GOODIE Co. Inc. retained the right to repurchase each share for $2 original purchase price if William B. Good leaves GOODIE Co. Inc. at any time during the next two years for any reason. GOODIE Co. Inc. stock increased to $5 per share in January 15, 2019 when the two year restriction ended. William B. Good sold the stock on September 30, 2019 for $9 per share, after the announcement of a new patent by GOODIE Co. Inc.. Advise William B. Good roughly how much tax she must pay and for what year(s). Assume William B. Good is in the 35% tax bracket for ordinary income and 15% for long term capital gains.

Thoroughly research the above situation and prepare a detailed Tax File Memorandum to support your research, findings, conclusion, and application to Mr. Good.

Sample Solution

manufacturing delight. On the off chance that this were the situation, at that point we would not think such a great amount about through and through freedom and our capacity to decide. This quest for such through and through freedom that is missing is actually what prompts a functioning and glad life — one that is reasonable for people, not uninvolved “brutes.” Aristotle shows his outrageous dissent of an existence of delight by utilizing the solid viewable signal of “monsters.” The word is intensely adverse with the goal that he can persuade the peruser to

swear off such a separated and indifferent life. Aristotle demonstrates that a glad life requests efficiency and movement, not conceited lack of involvement.

While an existence of delight is defamed for its affinity to overlook outside components, an existence of governmental issues is introduced as an insignificant improvement. An existence of legislative issues fathoms the inactivity of the previous by depending on respects and ideals. Political life gives a reason to an individual’s activities past how it influences the person in question inside. To be viewed as good, one depends on an outside individual or gathering to see this quality. By the by, it is right now of political life where the negative untruths. The political life concentrates a lot on the outer and insufficient on the interior. The exact harmony among interior and outer, that is basic for human satisfaction, is lost.

An existence of legislative issues disregards interior perspectives since ideals depends almost no on whether an individual is really idealistic and more on whether the individual is viewed as righteous. Respect is handily controlled on the grounds that it depends on another person’s impression of you. Aristotle condenses the base of this issue by depicting this sort of life as “shallow.” People can provide for a noble cause in an open manner for the sole explanation of seeming kind, while, in private, they will not help the vagrant on their road. This refusal shows that individuals carrying on with a political life can without much of a stretch control their private self-centeredness into open temperance. The control isn’t just outside. Individuals regularly seek after respect as an approach to persuade themselves that they are acceptable. When this apparently altruistic individual gets an honor for their gift, the inspiration to be giving leaves. It is anything but difficult to see that such individuals are not really carrying on with a decent life, not to mention a glad one.

Respect and temperance are likewise beguiling on the grounds that they are dubious ideas. Given the circumstance where two individuals live precisely the same lives, one can be viewed as idealistic while the other isn’t. It is this arbitrariness that makes a political life an off base measure of bliss. Goodness needs to depend on the activities of the individual being referred to. For instance, an individual who dozes for as long as she can remember can be viewed as righteous. She never acted not idealistically yet she additionally didn’t effectively do anything essentially upright. Besides, on the off chance that she dozes as long as she can remember, she will impartially not have a glad life.

The last issue with an existence of legislative issues is that respect for the most part accept the defeating of misfortune. Take the circumstance of a neighborhood saint or even a legend from folklore, for example, Hercules. Despite the fact that Hercules was upbeat and respected when he crushed the hydra, he despite everything had the pressure and stress of managing the hydra. Individuals in such a circumstance scarcely recognize what really occurred during the battle, yet the accentuation is put on the open’s observation. Be that as it may, when it was only Hercules during the battle, he was positively not reeling with delight.

Generally speaking, the political life is debilitated by how it depends on social judgment and overlooks the genuine idea of an individual. So, it is “shallow.” There is no adjust or even a connection between outside observation and inside unwavering quality. Without the inside and outer elements relying upon one another, the way to joy is inadequate and genuine joy can’t be reached.

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