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ra1l [238]
3 years ago
6

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started

working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. How much gain will Maren recognize on the sale of the shares and how much tax will she pay assuming her marginal tax rate is 37 percent?a. $0 gain and $0 tax. b. $560 gain and $84 tax. c. $560 gain and $196 tax. d. 1120 gain and $168 tax.
Business
1 answer:
MAVERICK [17]3 years ago
4 0

Answer:

$500 gain and $185 tax

Explanation:

Sale of share = No. of  NQOs × No. of shares  × Selling price per share

                      = 10 × 10 × $20

                      = $2,000

Basis = No. of  NQOs × No. of shares  × share price @$15

         = 10 × 10 × $15

         = $1,500

Gain realised = Sale of share - Basis

                      = $2,000 - $1,500

                      = $500

The tax is calculated as follows:

= Gain realised × marginal tax rate

= $500 × 37%

= $185

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Explanation:

We have to enter the van as the cost for a cash purchase and all other neccesary cost to get the van ready for use and in company's possesion.

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5 0
3 years ago
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Tpy6a [65]

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Written notice of an Investigative Report must be given within 3 days advance notice before the report beings.

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3 0
3 years ago
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raketka [301]

Answer:

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8 0
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