In 2012 Martinez Corporation granted nonqualified stock options to Shawn to buy 1,000 shares of Martinez stock at $15 per share exercisable for six years. At the date of grant, the stock was selling for $10 per share. In 2014 Shawn exercises the options when the market price is $40 per share. In 2015, Shawn sells the 1,000 shares of stock for $42 per share. How much is the deduction that Martinez Corporation is allowed and in which year?

Answer rating: 100% (QA)

Martinez corporation is allowed the deduction equivalent to ... View the full answer