Required informationProblem 12-28 (LO 12-2) (Algo)Skip to question

[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 $32 per share). At the time he started working for Cutter Corporation three years ago, Cutter's stock price was $32 per share. Yost exercised all of his options when the share price was $64 per share. Two years after acquiring the shares, he sold them at $98 per share.

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

Problem 12-28 Part b (Algo)

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?