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Zaire Corporation granted an ISO for 250 shares of its stock to Bruno on July 20, 2020, for services rendered.

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Zaire Corporation granted an ISO for 250 shares of its stock to Bruno on July 20, 2020, for services rendered. The option price was $130 and the fair market value was $130 on the date of the grant. Bruno exercised the option on September 1, 2020, when the fair market value of the stock was $225 per share. He sells the stock on November 30, 2021, for $350 per share. 

a. What is the amount of the AMT adjustment item that Bruno has on the exercise date?

b. What is Bruno’s long-term capital gain on the sale of the stock in 2021?

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Calculations and thorough explanation a Bruno has an AMT adjustment item of 2 500 …View the full answer


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Question Details
Chapter # 19
Section: Discussion Question
Problem: 22
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Question Posted: July 26, 2022 01:02:58
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