What is the tax impact on john's income from the stock options in 2016?
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 38P
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Question
john receives 100 stock options in XYC Co, which is a public company. He was
granted the stock options in 2016 when the fair market value of the shares was $5
per share and the exercise price was $6 per share. He exercised his stock options in
2018 when the fair market value was $18 per share. In 2020, john plans to sell his
100 shares for $22 per share.
What is the tax impact on john's income from the stock options in 2016?
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