$92\mathrm{.}0\%$ compl$98\mathrm{.}0\%$ complete

Question

Jackie receives incentive stock options $($ISOs$)$ with an exercise price equal to the FMV at the date of the grant of $$22.$ Jackie exercises these options $3$ years from the date of the grant when the FMV of the stock is $$30.$ Jackie then sells the stock $3$ years after exercising for $$35.$ Which of the following statements is $($are$)$ true?

At the date of grant, Jackie will have ordinary income equal to $$22.$

At the date of exercise, Jackie will have W$-2$ income of $$8.$

At the date of sale, Jackie will have long$-$term capital gain of $$13.$

Jackie$$s employer will not have a tax deduction related to the grant, exercise or sale of this ISO by Jackie.

A$\mathrm{.}3$ only

B$\mathrm{.}3$ and $4$

C$\mathrm{.}2,3,$ and $4$

D$\mathrm{.}1,2,$ and $4$ete

Question

Which of the following situations might convince an employer to choose a nonqualified retirement plan over a qualified profit$-$sharing plan?

A$.$The employer, a closely held C Corporation, is in the $15\%$ income tax bracket and the sole owner of the employer is in the $35\%$ income tax bracket.

B$.$The employer only wants to meet the organization$$s objectives of attracting executives, retaining executives, and providing for a graceful transition in company leadership. The employer is not concerned with providing retirement benefits to the rank and file employees.

C$.$The employer is not willing to pay high administrative costs.

D$.$All of the above.