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Author Question: Jackson Corporation granted an incentive stock option to employee Caroline on January 1, two years ... (Read 55 times)

Evvie72

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on: Sep 13, 2020
Jackson Corporation granted an incentive stock option to employee Caroline on January 1, two years ago. The option price was $150, and the FMV of the Jackson stock was also $150 on the grant date. The option allowed Caroline to purchase 160 shares of Jackson stock. Caroline exercised the option on August 1, 2015, when the stock's FMV was $250. Unless otherwise stated, assume Caroline is a qualifying employee. If Caroline sells the stock on July 5, 2016 for $400 per share, she must recognize
◦ long-term capital gain of $40,000 in the year of sale.
◦ long-term capital gain of $24,000 in the year of sale.
◦ ordinary income of $16,000 on the exercise date and a long-term capital gain of $24,000 in the year of sale.
◦ ordinary income of $16,000 and a short-term capital gain of $24,000 in the year of sale.
Federal Taxation 2017 Individuals ¦ Pope, Rupert, Anderson ¦ 30th Edition
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Marked as best answer by Evvie72 on Sep 13, 2020

trampas

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Reply #1 on: Sep 13, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Evvie72

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Reply 2 on: Sep 13, 2020
YES! Correct, THANKS for helping me on my review

elyse44

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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