Statement 1: In the case of stock options, the amount of compensation shall be the FMV of the stock options at the time of the exercise of such option.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  1. Statement 1: In the case of stock options, the amount of compensation shall be the FMV of the stock options at the time of the exercise of such option.

 

Statement 2: Upon the exercise of the stock option, additional income shall be subject to regular tax if exercised by a managerial employee.

 

 Which statement/s is/are correct?

a.Statement 2

b.Both statements

c.Statement 1

d. neither statement

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