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Author Question: Wilson Corporation granted an incentive stock option to Reva on January 1, two years ago. The option ... (Read 82 times)

codyclark

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on: Sep 13, 2020

Question 1

Which statement is correct regarding SIMPLE retirement plans?
◦ SIMPLE plans are not subject to nondiscrimination rules.
◦ This plan can only be adopted by employers with 50 or fewer employees.
◦ Only the employer can contribute to the plan.
◦ Employer contributions must vest within three years.

Question 2

Wilson Corporation granted an incentive stock option to Reva on January 1, two years ago. The option price was $300, and the FMV of the Wilson stock was also $300 on the grant date. The option allowed Reva to purchase 150 shares of Wilson stock. Reva exercised the option on August 1, this year, when the stock's FMV was $400. Unless otherwise stated, assume Reva is a qualifying employee. The results of the above transactions to Reva will be
◦ no income to Reva on the grant date or exercise date but there is an alternative minimum tax adjustment item to Reva of $15,000.
◦ no income tax or alternative minimum tax effect for Reva.
◦ ordinary income to Reva on the exercise date of $15,000.
◦ capital gain to Reva on the exercise date of $15,000.
Federal Taxation 2017 Individuals ¦ Pope, Rupert, Anderson ¦ 30th Edition
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Marked as best answer by codyclark on Sep 13, 2020

leannegxo

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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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codyclark

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Reply 2 on: Sep 13, 2020
Gracias!

fatboyy09

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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