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.
Martin Lichtenstein
Martin Lichtenstein
Example of an employee performance evaluation form Cont
Unseasonably warm in March 2012
ADHD (Stock photo)
January 23 2023