Paola exercised an incentive stock option on March 1, 2021. She acquired 2,000 shares of stock at
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Paola exercised an incentive stock option on March 1, 2021. She acquired 2,000 shares of stock at an exercise price of $3 per share when the fair market value of the stock was $15 per share. However, Paola was concerned that the stock was overvalued, so she sold all of the stock acquired with the option on December 21, 2021, for $17 per share.
Will Paola incur an AMT adjustment in 2021 as a result of the exercise of the option or the sale of the shares? Explain.
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Paola will incur an AMT adjustment for the year 2021 since the stock ...View the full answer
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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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