GGI (CCPC) granted Ramshika an option to purchase 1,200 shares of its stock at a price of
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GGI (CCPC) granted Ramshika an option to purchase 1,200 shares of its stock at a price of $37/share in February 2021. At the time the options were granted, the FMV of the shares was $40 each. In July 2022, when the shares were trading at $45/share, Ramshika exercised all the options. In 2023, Ramshika transferred ownership of the shares to her 16-year-old daughter, Roma, so she could save any future dividend income for her future university tuition or sell them for a profit. The FMV of the shares at this time grew to $50/share. Roma received a $2,000 non-eligible dividend in 2023 and she continues to own the shares as of December 31, 2023. How much is the net capital gain for only Rashmika?
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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