ZuoTi.Pro
Question

Maren received 12 NQOs (each option gives her the right to purchase 15 shares of stock...

Maren received 12 NQOs (each option gives her the right to purchase 15 shares of stock for $9 per share) at the time she started working when the stock price was $11 per share. When the share price was $12 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $25 per share. What is the amount of Maren's bargain element?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer)

12 options × 15 shares × ($12 market price at exercise - $9 exercise price).

=$540

So the Maren's Bargain Element is $540

0 0
Add a comment
Know the answer?
Add Answer to:
Maren received 12 NQOs (each option gives her the right to purchase 15 shares of stock...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Raja received 21 NQOs (each option gives him the right to purchase 16 shares of stock...

    Raja received 21 NQOs (each option gives him the right to purchase 16 shares of stock for $24 per share) from his employer. At the time he started working, the stock price was $15 per share. Now that the share price is $24 per share, he intends to exercise all of the options using same-day sale. What are Raja's after tax proceeds from the sale if his marginal tax rate is 30 percent?

  • LO 12-2 29. Haven received 200 NQOs (each option gives him the right to purchase 20...

    LO 12-2 29. Haven received 200 NQOs (each option gives him the right to purchase 20 shares of Barlow Corporation stock for $7 per share) at the time he started working for Barlow Corporation three years ago when its stock price was $7 per share. Now that Barlow's share price is $50 per share, he intends to exercise all of his options. After acquiring the 4,000 Barlow shares with his stock options, he intends to hold the shares for more...

  • Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter...

    Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter Corporation stock for $16 per share) at the time he started working for Cutter Corporation three years ago. Cutter’s stock price was $16 per share. Yost exercised all of his options when the share price was $24 per share. Two years after acquiring the shares, he sold them at $50 per share. (Input all amounts as positive values. Leave no answer blank. Enter zero...

  • [Q6] Mark received 10 ISOs (each option gives him the right to purchase 12 shares of...

    [Q6] Mark received 10 ISOs (each option gives him the right to purchase 12 shares of Hendricks Corporation stock for $8 per share) at the time he started working for Hendricks Corporation five years ago when Hendricks’s stock price was $5 per share. Now that Hendricks’s share price is $35 per share, Mark intends to exercise all of his options and hold all of his shares for more than one year. Assume that more than a year after exercise, Mark...

  • Antonio received 40 ISOs (each option gives him the right to purchase 20 shares of Zorro...

    Antonio received 40 ISOs (each option gives him the right to purchase 20 shares of Zorro stock for $3 per share) at the time he started working for Zorro Corporation six years ago. Zorro’s stock price was $3 per share at the time. Now that Zorro’s stock price is $50 per share, Antonio intends to exercise all of his options and immediately sell all the shares he receives from the options exercise. (Enter all amounts as positive values. Leave no...

  • Mark received 10 ISOs (each option gives him the right to purchase 12 shares of Hendricks...

    Mark received 10 ISOs (each option gives him the right to purchase 12 shares of Hendricks Corporation stock for $7 per share) at the time he started working for Hendricks Corporation five years ago when Hendricks’s stock price was $5 per share. Now that Hendricks’s share price is $35 per share, Mark intends to exercise all of his options and hold all of his shares for more than one year. Assume that more than a year after exercise, Mark sells...

  • Question 10 of 15 On March 14, 2018, Mckensie exercised an incentive stock option (SO) granted to her her to purchase 1,000 shares of stock for $10 per share. When she exercised share. She sold t...

    Question 10 of 15 On March 14, 2018, Mckensie exercised an incentive stock option (SO) granted to her her to purchase 1,000 shares of stock for $10 per share. When she exercised share. She sold the stock at a gain six months later, when the stock transaction, how much does Mckensie report on her 2018 return as short-term her option, the stock was trading at $15 pe was trading at $21 per share. As a resuit of tis capital gain...

  • Mark received 10 ISOs (each option gives him the right to purchase 14 shares of Hendricks Corporation stock for $7 per s...

    Mark received 10 ISOs (each option gives him the right to purchase 14 shares of Hendricks Corporation stock for $7 per share) at the time he started working for Hendricks Corporation five years ago when Hendricks’s stock price was $5 per share. Now that Hendricks’s share price is $35 per share, Mark intends to exercise all of his options and hold all of his shares for more than one year. Assume that more than a year after exercise, Mark sells...

  • Required information [The following information applies to the questions displayed below. Cammie ...

    Required information [The following information applies to the questions displayed below. Cammie received 100 NQOs (each option provides a right to purchase 10 shares of MNL stock for $10 per share) at the time she started working for MNL Corporation (5/1/Y1) four years ago when MNL's stock price was $8 per share. Now that MNL's stock price is $40 per share (8/15/Y5), she intends to exercise all of her options. After acquiring the 1,000 MNL shares with her options, she...

  • Janssen is an employee of Birch Corporation. On February 1, 2017, she received a nonstatutory stock...

    Janssen is an employee of Birch Corporation. On February 1, 2017, she received a nonstatutory stock option from her employer giving her the right to purchase 100 shares of Birch stock for $15 per share. The option is not traded on an established market, and its value could not be readily determined when it was granted. On September 4, 2018, Janssen exercised the option and purchased 100 shares of the stock. When she exercised this option, the fair market value...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT