Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 12, Problem 13DQ
To determine
Explain the treatment of AMT adjustment, if stock purchased under incentive stock option is sold in the year of exercise.
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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.
Louis is an employee of Birch Corporation, On February 1 2021, she received a non statutory stock option from her employer giving her the right purchase 100 shares of Birch stock for $30 per share. The option is not traded on an established market and its value could not be readily determined when it was granted. On September 6 2022 Louise exercised the option and purchased 100 shares of the stock. Which she exercised the option . The fair market value of the stock was $90 per share. How much compensation should be included in Louise 2022 income as a result of exercising the option.
A) 0.
B) 3000
C) 6000
D) 9000
Arnold exercised an incentive stock option in 2017, acquiring 1,300 shares of stock at an option price of $185 per share. The FMV of the stock at the date of exercise was $219 per share. In 2019, the rights became freely transferable and were not subject to a substantial risk of forfeiture. Arnold sells the shares in 2020 for $278 per share.
Required:
How do these transactions affect his AMTI in 2017, 2019, and 2020? (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
Chapter 12 Solutions
Individual Income Taxes
Ch. 12 - Kelly was promoted and received a substantial...Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Can any nonrefundable credits, other than the...Ch. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 16DQCh. 12 - Prob. 17DQCh. 12 - During the year, Rachel earned 18,000 of interest...Ch. 12 - Compute the 2019 AMT exemption for the following...Ch. 12 - In March 2019, Serengeti exercised an ISO that had...Ch. 12 - Prob. 21CECh. 12 - Prob. 22CECh. 12 - Prob. 23CECh. 12 - Prob. 24CECh. 12 - Prob. 25CECh. 12 - Prob. 26PCh. 12 - Arthur Wesson, an unmarried individual who is age...Ch. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Lisa records nonrefundable Federal income tax...Ch. 12 - Prob. 31PCh. 12 - Prob. 32PCh. 12 - Prob. 33PCh. 12 - In March 2019, Helen Carlon acquired used...Ch. 12 - Prob. 35PCh. 12 - Prob. 36PCh. 12 - Prob. 37PCh. 12 - Prob. 38PCh. 12 - Christopher regularly invests in internet company...Ch. 12 - Sammy and Monica, both age 67, incur and pay...Ch. 12 - Prob. 41PCh. 12 - Prob. 42PCh. 12 - Prob. 43PCh. 12 - Prob. 44PCh. 12 - Anh is single, has no dependents, and itemizes...Ch. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Jane and Robert Brown are married and have eight...Ch. 12 - Prob. 49PCh. 12 - Renee and Sanjeev Patel, who are married, reported...Ch. 12 - Prob. 51PCh. 12 - Lynn, age 45, is single and has no dependents. Her...Ch. 12 - Prob. 53PCh. 12 - Robert A. Kliesh, age 41, is single and has no...Ch. 12 - Prob. 55CPCh. 12 - Prob. 1RPCh. 12 - Prob. 2RPCh. 12 - Prob. 3RPCh. 12 - Prob. 1CPACh. 12 - Prob. 2CPACh. 12 - Carol reports taxable income of 48,000. Included...Ch. 12 - Prob. 4CPA
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