Mr. Chan's employer gave him a share option in March last year to buy 10,000 shares in X Ltd for $5 each when themarket price of the shares was $10. Mr. Chan exercised the share option in March this year when the market price ofthe shares was $15 each. He sold all the shares yesterday for $20 each. What is the share option gain to be included inthe assessable income? Question 41 Answer a. $50,000 b. $150,000 c. $200, 000 d. $100, 000

Basic Information Sale Consideration = $200,000Cost of Acquisition = $100,000

Answered: Mr. Chan's employer gave him a share…

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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Hannah bought 1,000 shares of Zoom Technologies stock at $15 from an initial public offering. Hannah sold the stock after it rose 40% on the opening day of trading. Hannah has a 24% effective tax rate and a 37% marginal tax rate. How much tax does Hannah owe from the stock sale? O $1,440. O $1,200. O $2,220. O $900. Save for Later Submit Answer
2) Andrew bought 10,000 shares of stock B at $2 per share. At the end of the year, he sold all the shares at $2.50 per share. The transactions payable for share transactions in Singapore are: Clearing fee Trading access fee Brokerage commission 0.0325% 0.0075% 0.2800% In addition to the above cost, Andrew has to pay GST of 7% on the total transaction cost (i.e. sum of clearing fee, trading access fee and brokerage commission). Calculate Andrew's profits in dollars and return.
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