Zaire Corporation granted an ISO for 250 shares of its stock to Bruno on July 20, 2020,
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Zaire Corporation granted an ISO for 250 shares of its stock to Bruno on July 20, 2020, for services rendered. The option price was $130 and the fair market value was $130 on the date of the grant. Bruno exercised the option on September 1, 2020, when the fair market value of the stock was $225 per share. He sells the stock on November 30, 2021, for $350 per share.
a. What is the amount of the AMT adjustment item that Bruno has on the exercise date?
b. What is Bruno’s long-term capital gain on the sale of the stock in 2021?
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Calculations and thorough explanation a Bruno has an AMT adjustment item of 2500 ...View the full answer
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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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