Arnold exercised an incentive stock option in 2019, acquiring 1,500 shares of stock at an option price of $80 per share. The FMV of the stock at the date of exercise was $110 per share. In 2021, the rights became freely transferable and were not subject to a substantial risk of forfeiture. Arnold sells the shares in 2022 for $165 per share. Required: How do these transactions affect his AMTI in 2019, 2021, and 2022? Note: Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
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Arnold exercised an incentive stock option in 2019, acquiring 1,500 shares of stock at an option price of $80 per share. The FMV of the stock at the date of exercise was $110 per share. In 2021, the rights became freely transferable and were not subject to a substantial risk of forfeiture. Arnold sells the shares in 2022 for $165 per share.

Required:

How do these transactions affect his AMTI in 2019, 2021, and 2022?

Note: Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.

 
 
 
 
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