Issue Recognition Problems Identify the tax issue or issues suggested
Issue Recognition Problems Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.
Six years ago, Ms. PL paid $20 per share for 1,000 shares of her employer’s stock. This stock is now worth $58 per share. Ms. PL wants to exercise a stock option to buy 1,000 more shares at a strike price of $29 per share. Because she does not have $29,000 cash readily available, she has requested that the corporation allow her to exchange 500 of her original shares (valued at $29,000) for the 1,000 new shares.
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