Rex, an executive for Axe Capital Inc., is granted a stock option on March 1, 2019. The option allows Rex to purchase 1,000 shares of Axe Capital stock. The current FMV of the stock is $50/share. On June 1, 2021 Rex exercises the option when the FMV of the stock is $75/share. On June 30, 2023 Rex sells the 1,000 shares for $100/share. The following 4 questions are related to this.

What amount of taxable income, if any, would be reported by Rex on the grant date? Enter a value

Jerome, a self-employed attorney, incurs the following expenses in 2019 related to his law practice. What is the total amount deductible for tax purposes?

Meals with clients	800
Country club dues	2,000
Entertainment for clients	1,000

Jermaine, a self-employed bricklayer incurs the following total auto expenses in 2019. 70% of the vehicle was used for business purposes. Using the standard mileage method, what is Jermaine's auto deduction in 2019?

Depreciation	$ 6,000
Fuel	$ 2,500
Insurance	$ 1,200
Parking (all business)	$ 300
Total Miles Driven in 2019	25,000

Answer rating: 100% (QA)

1 Answer 25000 Explanation Taxable income Fair Market Value of sto... View the full answer