Which of the following statements best describes a purpose of form 3921, Exercise of an Incentive...
Which of the following statements best describes a purpose of form 3921, Exercise of an Incentive Stock Option Under Section 422(b)?
a) a taxpayer may need to use information from Form 3921 to report an adjustment for the alternative minimum tax.
b) Form 3921 serves as a record of the taxpayer's gains or losses from the sale of securities acquired through the exercise of an incentive stock option.
c) Form 3921 reports compensation income subject to social security and medicare taxes.
d) Form 3921 reports the amount of ordinary income incurred through the exercise of an incentive stock option.
Homework Answers
| A taxpayer may need to use information from Form 3921 to report an adjustment for the alternative minimum tax. |
| Form 3921 is used by employers to report Exercise of an Incentive Stock Option |
| The difference between fair value of share and exercise price needs to be reported as an adjustment for the alternative minimum tax. |
| Option A is correct |
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