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Maren received 12 NQOs (each option gives her the right to purchase 13 shares of stock for $10 per share) at the time she started working when the stock price was $8 per share. When the share price was $17 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $22 per share. How much gain will Maren recognize on the sale and how much tax will she pay assuming her marginal tax rate is 35 percent and long-term capital gains rate is 15 percent??

A. $1,872 gain and $281 tax.
B. $0 gain and $0 tax
C. $780gain and $273 tax
D. $780 gain and $117 tax

User Indre
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1 Answer

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Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Maren received 12 NQOs (each option gives her the right to purchase 13 shares of stock-example-1
User Arnie Schwarzvogel
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