Wade Inc. granted a non-qualified stock option for 100 shares at $50 per share to Mary, an
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Wade Inc. granted a non-qualified stock option for 100 shares at $50 per share to Mary, an employee, on May 1, Year 1. On that date, the option was selling on an established market for $4 per share. Mary exercised the option on August 2, Year 2, when the FMV was $80 per share. She sold the stock on September 2, Year 3, for $100 per share. How much gross income and what type did Mary recognise in Year 1, 2, and 3?
Related Book For
South Western Federal Taxation Individual Income Taxes 2017
ISBN: 9781305873988
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen
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