On April 5, 2019, Gustavo was granted an NQSO for 200 shares of common stock at $50
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On April 5, 2019, Gustavo was granted an NQSO for 200 shares of common stock at $50 per share. On the date of the grant, there was no readily ascertainable fair market value for the option. Gustavo exercised the options on March 31, 2020, when the stock was selling for $60 per share. He sold the shares on December 1, 2021, for $75 per share.
a. What amount and type of income, if any, will Gustavo have on the exercise date?
b. What amount and type of income, if any, will Gustavo have on the date of the sale?
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Related Book For
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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