In 2021, Reya exercised an incentive stock option that had been granted to her in 2018 by
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In 2021, Reya exercised an incentive stock option that had been granted to her in 2018 by her employer, Weather Corporation. Reya acquired 100 shares of Weather stock for the option price of $190 per share. The fair market value of the stock at the date of exercise was $250 per share. Reya sells the stock for $340 per share in 2023.
a. What is the amount of Reya’s AMT adjustment in 2021? What is her recognized gain on the sale for regular tax and for AMT purposes in 2023?
b. How would your answers in part (a) change if Reya had sold the stock in 2021 rather than 2023?
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Solution a In 2023 Reya sold her stock for 340 per share the fair market value on the dat...View the full answer
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Labindao Antoque
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South-Western Federal Taxation 2022 Individual Income Taxes
ISBN: 9780357519073
45th Edition
Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman
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