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Author Question: Martin Corporation granted an incentive stock option to employee Caroline on January 1, 2012. The ... (Read 23 times)

cool

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on: Sep 13, 2020
Martin Corporation granted an incentive stock option to employee Caroline on January 1, 2012. The option price was $150, and the FMV of the Martin stock was also $150 on the grant date. The option allowed Caroline to purchase 160 shares of Martin 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 September 5, 2016 for $350 per share, she must recognize (ignore alternative minimum tax)
◦ 0. No gain or loss is recognized at exercise or sale with incentive stock options.
◦ long-term capital gain of $16,000 in 2016.
◦ ordinary income of $16,000 on the exercise date and a long-term capital gain of $16,000 in 2016.
◦ long-term capital gain of $32,000 in 2016.
Federal Taxation 2017 Individuals ¦ Pope, Rupert, Anderson ¦ 30th Edition
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Marked as best answer by cool on Sep 13, 2020

CAPTAINAMERICA

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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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cool

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Reply 2 on: Sep 13, 2020
Wow, this really help

juliaf

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

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