Rustin recently retired from Fox, Inc., a national plastics supplier. When Rustin retired his stock bonus plan had 10,000 shares of Fox, Inc. stock. Fox, Inc. took deductions equal to $20 per share for the contributions made on Rustin's behalf. At retirement, Rustin took a lump-sum distribution of the employer stock. The fair market value of the stock at distribution was $35 per share. Six months after distribution, Rustin sold the stock for $40 per share. What amount was subject to ordinary income tax on Rustin's tax return at the date Fox, Inc. contributed the stock to the plan?

Assume the same facts as above: What amount was subject to ordinary income on Rustin's tax return at the date the stock was distributed?

Assume the same facts as above: How much gain was Rustin subject to at the date the stock was distributed?

Assume the same facts as above: Which of the following gain was Rustin subject to at the date the stock was sold?

a) $0

b) $50,000 short-term capital gain

c) $200,000 long-term capital gain

d) $150,000 long-term capital gain and $50,000 short-term capital gain

e) $400,000 long-term capital gain