Homework Answers
A.
| given | price per share | |
| price per share | 20 | |
| grant date | 18.62 | |
| exercised date | 31.4 | |
| no of shares | 500 | |
| in 2014( at the time of exercise) | ||
| AMT(IN $) | ||
| grant price | 10,000.00 | |
| exercise price | 9,310.00 | |
| difference | 690.00 | |
| NO INCOME GENERATED | ||
| Income in 2019 | AMT(IN $) | |
| market price | 31.4 | |
| exercise price | 18.62 | |
| income (per share) | 12.78 | |
b.
| Mr. Pearl's basis in 500 shares | ||
| Income in 2019 | AMT(IN $) | |
| market price | 15,700.00 | |
| exercise price | 9,310.00 | |
| income generated | 6,390.00 | |
c.
| IN YEAR 2014 | NO TAX CONSEQUENSES | |
| IN YEAR 2019 | AMT(IN $) | |
| capital gain(assume 40%) | 2,556.00 | |
Add Answer to:
16. In 2014, BT granted a nonqualified stock option to Ms. Pearl to buy 500 shares...
1. In 20x8, BT Inc. granted a nonqualified stock option to Ms..P to buy 500 shares...
1. In 20x8, BT Inc. granted a nonqualified stock option to Ms..P to buy 500 shares of BT stock at $20 per share for 10 years. At date of grant, BT stock was trading on NASDAQ for $20 per share. In the current year, Ms. P exercised the option when BT’s stock was trading at $37.10. a) How much income must Ms. P recognize in 20x8 and in the current year because of the option? b) What are the tax...
This year, CSUEB Inc. granted a nonqualified stock option to Lucía Muñoz to buy 10,000 shares...
This year, CSUEB Inc. granted a nonqualified stock option to Lucía Muñoz to buy 10,000 shares of CSUEB stock for $10 per share for five years. At date of grant, CSUEB stock was selling on a regional securities market for $8 per share. CSUEB recorded $25,000 compensation expense for the estimated value of the option. Five years after CSUEB granted the option to Lucía Muñoz, she exercised it on a day when CSUEB stock was selling for $12.00 per share....
On January 1, 2018, Sheridan Company granted Dic Williams, an employee, an option to buy 500 shares of Sheridan Co. stoc...
On January 1, 2018, Sheridan Company granted Dic Williams, an
employee, an option to buy 500 shares of Sheridan Co. stock for $30
per share, the option exercisable for 5 years from date of grant.
Using a fair value option pricing model, total compensation expense
is determined to be $5240. Williams exercised his option on
September 1, 2018, and sold his 500 shares on December 1, 2018.
Quoted market prices of Sheridan Co. stock during 2018
were:
January 1
$28...
On January 1, 2019, Bramble Corp. granted Sam Wine, an employee, an option to buy 1,000...
On January 1, 2019, Bramble Corp. granted Sam Wine, an
employee, an option to buy 1,000 shares of Bramble Co. stock for
$30 per share, the option exercisable for 5 years from date of
grant. Using a fair value option pricing model, total compensation
expense is determined to be $5580. Wine exercised his option on
October 1, 2021 and sold his 1,000 shares on December 1, 2021.
Quoted market prices of Bramble Co. stock in 2021 were:
July 1$28 per...
Five years ago Roger was granted 5,000 incentive stock options and 3,500 nonqualified stock options. At...
Five years ago Roger was granted 5,000 incentive stock options and 3,500 nonqualified stock options. At that time the stock price was $20 per share. The ISO exercise price was $20 per share and the NSO exercise price was $2 per share. The value of the nonqualified options at the time of the grant was $18 per share. All of the ISOs and NSOs were exercised on the same day in the third year after the grant when the stock...
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...
In 2011, Brian was granted 4,000 stock options by his employer, Dozier Corporation. The options m...
In 2011, Brian was granted 4,000 stock options by his employer, Dozier Corporation. The options must be exercised within 8 years from the grant date. Each option allowed Brian to purchase one share of Dozier Corporation stock for $12 per share. On the date the options were granted to Brian in 2011, Dozier Corporation stock was selling for $12 per share. In 2016, when Dozier Corporation stock was selling for $23 per share, Brian exercised his options and purchased 4,000...
On January 1, 2021, D Corp. granted an employee an option to purchase 7,500 shares of...
On January 1, 2021, D Corp. granted an employee an option to purchase 7,500 shares of D's $4 par common stock at $23 per share. The options became exercisable on December 31, 2022, after the employee completed two years of service. The option was exercised on January 10, 2023. The market prices of D's stock were as follows: January 1, 2021, $36; December 31, 2022, $55; and January 10, 2023, $47. An option pricing model estimated the value of the...
Johnstown Company granted 10 officers rights to buy 10,000 shares each of common stock $2 par,...
Johnstown Company granted 10 officers rights to buy 10,000 shares each of common stock $2 par, at $10 per share on May 1, 2017, the grant date. The stock was selling for $8 per share at the time. The rights cannot be exercised until the beginning of 2018 and expire at the end of 2018. Compensation expense is $200,000, covering a period of 2017 and 2018. Record the following: Dr. Cr. May 1, 2017, the grant date, issue of the...
The following information is for questions one through six. This year, CSUEB Inc. granted a nonqualified...
The following information is for questions one through six. This year, CSUEB Inc. granted a nonqualified stock option to Lucía Muñoz to buy 10,000 shares of CSUEB stock for $10 per share for five years. At date of grant, CSUEB stock was selling on a regional securities market for $8 per share. CSUEB recorded $25,000 compensation expense for the estimated value of the option. Assuming a 30% - (21% federal + 9% state) tax rate, compute CSUEB's deferred tax asset...
This year, CSUEB Inc. granted a nonqualified stock option to Lucía Muñoz to buy 10,000 shares of CSUEB stock for $10 per share for five years. At date of grant, CSUEB stock was selling on a regional securities market for $8 per share. CSUEB recorded $25,000 compensation expense for the estimated value of the option. Five years after CSUEB granted the option to Lucía Muñoz, she exercised it on a day when CSUEB stock was selling for $12.00 per share....
On January 1, 2018, Sheridan Company granted Dic Williams, an
employee, an option to buy 500 shares of Sheridan Co. stock for $30
per share, the option exercisable for 5 years from date of grant.
Using a fair value option pricing model, total compensation expense
is determined to be $5240. Williams exercised his option on
September 1, 2018, and sold his 500 shares on December 1, 2018.
Quoted market prices of Sheridan Co. stock during 2018
were:
January 1
$28...
On January 1, 2019, Bramble Corp. granted Sam Wine, an
employee, an option to buy 1,000 shares of Bramble Co. stock for
$30 per share, the option exercisable for 5 years from date of
grant. Using a fair value option pricing model, total compensation
expense is determined to be $5580. Wine exercised his option on
October 1, 2021 and sold his 1,000 shares on December 1, 2021.
Quoted market prices of Bramble Co. stock in 2021 were:
July 1$28 per...
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...
The following information is for questions one through six. This year, CSUEB Inc. granted a nonqualified stock option to Lucía Muñoz to buy 10,000 shares of CSUEB stock for $10 per share for five years. At date of grant, CSUEB stock was selling on a regional securities market for $8 per share. CSUEB recorded $25,000 compensation expense for the estimated value of the option. Assuming a 30% - (21% federal + 9% state) tax rate, compute CSUEB's deferred tax asset...
Most questions answered within 3 hours.
-
A speeding car is traveling along a straight road with a
constant speed of 100 km/hour....
asked 28 seconds ago -
When 60.1 gg of calcium is reacted with nitrogen gas, 31.7 gg of
calcium nitride is...
asked 5 minutes ago -
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 20 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 14 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 27 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 36 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 35 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 37 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 38 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 42 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 58 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 59 minutes ago