Walmart Inc. granted Ms. Green, its vice-president, an option to purchase 10,000 shares for $5 per...

 

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Walmart Inc. granted Ms. Green, its vice-president, an option to purchase 10,000 shares for $5 per share. The option was granted on March 10, 2014 when the FMV per share was $10. On March 10, 202O, she acquired the 10,000 shares under the option. On this date, the FMV per share was $20. On March 1O, 2023, she sold the shares at a FMV of $30 per share. Which of the following statements is TRUE regarding the tax consequences on the above dates if Walmart Inc. was a CCPC? * No tax consequences on March 10, 2014, No tax consequences on March 10, 2020; No tax consequences on March 10, 2023 No tax consequences on March 10, 2014, No tax consequences on March 10, 2020 Taxable income of $125,000 on March 10, 2023 No tax consequences on March 10, 2014, Employment income inclusion of $150,000 on March 10, 2020; Taxable income of $125,000 on March 10, 2023 Employment income inclusion of $100,000 on March 10, 2014, Employment Income O inclusion of $150,000 on March 10, 2020, Taxable income of $125,000 on March 10, 2023 Walmart Inc. granted Ms. Green, its vice-president, an option to purchase 10,000 shares for $5 per share. The option was granted on March 10, 2014 when the FMV per share was $10. On March 10, 202O, she acquired the 10,000 shares under the option. On this date, the FMV per share was $20. On March 1O, 2023, she sold the shares at a FMV of $30 per share. Which of the following statements is TRUE regarding the tax consequences on the above dates if Walmart Inc. was a CCPC? * No tax consequences on March 10, 2014, No tax consequences on March 10, 2020; No tax consequences on March 10, 2023 No tax consequences on March 10, 2014, No tax consequences on March 10, 2020 Taxable income of $125,000 on March 10, 2023 No tax consequences on March 10, 2014, Employment income inclusion of $150,000 on March 10, 2020; Taxable income of $125,000 on March 10, 2023 Employment income inclusion of $100,000 on March 10, 2014, Employment Income O inclusion of $150,000 on March 10, 2020, Taxable income of $125,000 on March 10, 2023

Answer rating: 100% (QA)

As per tax rules if CCPC gives stock option to employee th... View the full answer