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School
CUNY Borough of Manhattan Community College *
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Course
330
Subject
Finance
Date
Jan 9, 2024
Type
docx
Pages
1
Uploaded by fifoeliverta
Question
21
0
out
of
1
points
On
January
1,
2023,
Carly
received
1,000
SARs
at
$18,
the
current
trading
price
of
Clippers,
Inc.,
her
employer.
The
SAR
have
a
limit
of
$30/share.
During
2023,
the
value
of
the
shares
rise
and
peak
at
S40/share
on
or
about
December
17,
2023,
Carly
exercises
the
SARs
on
January
1,
2025,
when
Clipper's
stock
is
$20
per
share,
which
of
the
following
statements
s
true?
Selected
@
2.
In
2025
will
have
W-2
income
equal
to
$2,000.
Answer:
Answers:
1
n
2025
Carly
will
have
long-term
capital
gain
of
$2.000.
2.
In
2025
will
have
W-2
income
equal
to
$2,000.
3.
In
2025
Carly
will
have
W-2 income
equal
to
$20,000.
4
n
2025
Carly
will
have
an
adjusted
taxable
basis
of
$18,000
in
the
Clippers,
Inc.
stock.
@
5.
None
of
the
above.
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