a. What is the amount of Reya's AMT adjustment in 2021? What is her recognized gain on the sale for regular tax and for AMT purposes in 2023? In 2021, Reya has a positive income tax is $ 150,000 adjustment of $ AMT adjustment of 60,000. Her recognized gain on the sale for regular 150,000 for AMT purposes. As a result, Reya has a positive AMT and $ in 2023. b. How would your answers in (a) change if Reya had sold the stock in 2021 rather than 2023? Reya would have a s recognize $ AMT adjustment is required in 2021. For regular tax purposes, Liza would income and a $ short-term capital gain. of ordinary/compensation
a. What is the amount of Reya's AMT adjustment in 2021? What is her recognized gain on the sale for regular tax and for AMT purposes in 2023? In 2021, Reya has a positive income tax is $ 150,000 adjustment of $ AMT adjustment of 60,000. Her recognized gain on the sale for regular 150,000 for AMT purposes. As a result, Reya has a positive AMT and $ in 2023. b. How would your answers in (a) change if Reya had sold the stock in 2021 rather than 2023? Reya would have a s recognize $ AMT adjustment is required in 2021. For regular tax purposes, Liza would income and a $ short-term capital gain. of ordinary/compensation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject: acounting
Transcribed Image Text:In 2021, Reya exercised an incentive stock option that had been granted to her in 2018 by her employer, Weather
Corporation. Reya acquired 100 shares of Weather stock for the option price of $190 per share. The rights in the stock
become freely transferable and not subject to a substantial risk of forfeiture in 2021. The fair market value of the stock
at the date of exercise was $250 per share. Reya sells the stock for $340 per share in 2023.
If an amount is zero, enter "0".
a. What is the amount of Reya's AMT adjustment in 2021? What is her recognized gain on the sale for regular tax and
for AMT purposes in 2023?
In 2021, Reya has a positive
income tax is $
150,000
adjustment of $
AMT adjustment of
and $
60,000. Her recognized gain on the sale for regular
150,000 for AMT purposes. As a result, Reya has a positive AMT
in 2023.
b. How would your answers in (a) change if Reya had sold the stock in 2021 rather than 2023?
Reya would have a s
recognize $
AMT adjustment is required in 2021. For regular tax purposes, Liza would
short-term capital gain.
of ordinary/compensation income and a $
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