Required information

Problem $12-28($LO $12-2)($Static$)$

$[$The following information applies to the questions displayed below$]]$

Yost received $300$ NQOs $($each option gives Yost the right to purchase $10$ shares of Cutter Corporation stock for $\backslash (\backslash$$ $15\backslash )$ per share$).$ At the time he started working for Cutter Corporation three years ago, Cutter's stock price was $\backslash (\backslash$$ $15\backslash )$ per share. Yost exercised all of his options when the share price was $\backslash (\backslash$$ $26\backslash )$ per share. Two years after acquiring the shares, he sold them at $\backslash (\backslash$$ $47\backslash )$ per share.

Note: Input all amounts as positive values. Leave no answer blank. Enter zero if applicable.

Problem $12-28$ Part d $($Static$)$

d$.$ Assume that Yost's options were exercisable at $\backslash (\backslash$$ $20\backslash )$ and expired after five years. If the stock only reached $\backslash (\backslash$$ $18\backslash )$ during its high point during the five$-$year period, what are Yost's tax consequences on the grant date, the exercise date, and the date the shares are sold, assuming his ordinary marginal rate is $35$ percent and his long$-$term capital gains rate is $15$ percent?

b$.$ What are Cutter Corporation's tax consequences $($amount of deduction and tax savings from deduction$)$ on the grant date, the exercise date, and the date Yost sold the shares?

Answer is complete but not entirely correct.