On January 1st, three years ago, Randy was awarded 15,000 ISOs at an exercise price of $3
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Question:
On January 1st, three years ago, Randy was awarded 15,000 ISOs at an exercise price of $3 per share when the fair market value of the stock was equal to $3. On April 17th this year, Randy exercised all of his ISOs when the fair market value of the stock was $5 per share. At the date of exercise, what are the tax consequences to Randy?
(a) $0 W-2 income, $30,000 AMT adjustment. | ||
(b) $0 W-2 income, $75,000 AMT adjustment. | ||
(c) $30,000 ordinary income, $30,000 AMT adjustment. | ||
(d) $75,000 ordinary income, $0 AMT adjustment. |
Related Book For
Modern Portfolio Theory and Investment Analysis
ISBN: 978-1118469941
9th edition
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
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