30. Jackie receives incentive stock options (ISOS) with an exercise price equal to the FMV at the date of the grant of $22. Jackie exercises these options 3 years from the date of the grant when the FMV of the stock is $30. Jackie then sells the stock 3 years after exercising for $35. Which of the following statements is (are) true? 1. At the date of grant, Jackie will have ordinary income equal to $22. 2. At the date of exercise, Jackie will have W-2 income of $8. 3. At the date of sale, Jackie will have long-term capital gain of $13. 4. Jackie's employer will not have a tax deduction related to the grant, exercise or sale of this ISO by Jackie. a. 3 only. b. 3 and 4. c. 2, 3, and 4. d. 1, 2, and 4.

30. Jackie receives incentive stock options (ISOS) with an exercise price equal to the FMV at the date of the grant of $22. Jackie exercises these options 3 years from the date of the grant when the FMV of the stock is $30. Jackie then sells the stock 3 years after exercising for $35. Which of the following statements is (are) true? 1. At the date of grant, Jackie will have ordinary income equal to $22. 2. At the date of exercise, Jackie will have W-2 income of $8. 3. At the date of sale, Jackie will have long-term capital gain of $13. 4. Jackie's employer will not have a tax deduction related to the grant, exercise or sale of this ISO by Jackie. a. 3 only. b. 3 and 4. c. 2, 3, and 4. d. 1, 2, and 4.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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