Maritza, Melissa and Marilyn recently formed a corporation named M3, Inc. (or "M3"). On December 31, 2009, M3 issued 400,000 shares of common stock to Melissa and 400,000 shares of common stock to Marilyn. Melissa and Marilyn each paid $0.01 per share for their stock ($0.01 equaled the per share fair market value on December 31, 2009). Their stock is subject to a 4-year "repurchase option" (at cost) in favor of M3. Each M3 repurchase option will "lapse" over time so that on December 31 (for each of the next four years), 100,000 shares will be released from the repurchase option. For example, if Melissa quits M3 before December 31, 2013, M3 can repurchase Melissa's "unvested shares" for $0.01 per share (no matter what the fair market value is on that date).
Assume that Melissa DID file a timely "83(b) election." On December 31, 2010, Melissa is still working at M3 and thus 100,000 of Melissa's 400,000 shares are "released" from the M3 repurchase option (i.e., 100,000 of Melissa's shares "vest" on December 31, 2010). On that same day, the fair market value of the M3 stock is $1.01 per share. What 2010 income, if any, must Melissa report as a result of these events?