Mezzo was promoted as Finance Director of a Hong Kong listed company in April 2019. As a senior member of staff, she was given 1.5 million share options at an exercise price of $0.20 per share exercisable within two years from 1 April 2020. The shares were trading at $0.50 on that date. The share price of the company surged recently to $1.20 per share, at which time Mezzo exercised half of the options. Her stockbroker sold the shares at an average price of $1.00 per share. How much will be included as her assessable income in respect of the share options for the year of assessment 2020/21? Select one: a. $600,000 b. $750,000 c. $1,500,000 d. $450,000
Mezzo was promoted as Finance Director of a Hong Kong listed company in April 2019. As a senior member of staff, she was given 1.5 million share options at an exercise price of $0.20 per share exercisable within two years from 1 April 2020. The shares were trading at $0.50 on that date. The share price of the company surged recently to $1.20 per share, at which time Mezzo exercised half of the options. Her stockbroker sold the shares at an average price of $1.00 per share. How much will be included as her assessable income in respect of the share options for the year of assessment 2020/21? Select one: a. $600,000 b. $750,000 c. $1,500,000 d. $450,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mezzo was promoted as Finance Director of a Hong Kong listed company in April 2019. As a senior member of staff, she was given 1.5 million share options at an exercise price of $0.20 per share exercisable within two years from 1 April 2020. The shares were trading at $0.50 on that date.
The share price of the company surged recently to $1.20 per share, at which time Mezzo exercised half of the options. Her stockbroker sold the shares at an average price of $1.00 per share. How much will be included as her assessable income in respect of the share options for the year of assessment 2020/21?
Select one:
a.
$600,000
b.
$750,000
c.
$1,500,000
d.
$450,000
Clear my choice
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