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Author Question: Ruby Corporation grants stock options to Iris on February 1, 2015. The options do not have a readily ... (Read 133 times)

RYAN BANYAN

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Question 1

Johanna is single and self-employed as a technology consultant. She wants to set money aside for her retirement. What tax and financial issues should she consider?

Question 2

Ruby Corporation grants stock options to Iris on February 1, 2015.  The options do not have a readily ascertainable value.  The option price is $100, and the FMV of the Ruby stock is also $100 on the grant date. The option allows Iris to purchase 200 shares of Ruby stock. Iris exercises the option on August 1, 2016, when the stock's FMV is $150.  Iris sells the stock on December 5, 2017 for $400.  Determine the amount and character (i.e. ordinary, LTCG or STCG) of income recognized by Iris and the deduction allowed Ruby Corporation in 2015, 2016 and 2017 under the following assumptions:

a. The stock option is an incentive stock option.
b. The stock option is a nonqualified stock option.


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Marked as best answer by RYAN BANYAN on Sep 13, 2020

jesse.fleming

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RYAN BANYAN

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Reply 2 on: Sep 13, 2020
:D TYSM


ktidd

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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