1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
irga5000 [103]
3 years ago
8

In 2019, Liza exercised an incentive stock option that had been granted to her in 2016 by her employer, Weather Corporation. Liz

a acquired 100 shares of Weather stock for the option price of $190 per share. The fair market value of the stock at the date of exercise was $250 per share. Liza sells the stock for $340 per share in 2021. What is the amount of Liza’s AMT adjustment in 2019?
Business
1 answer:
Mashcka [7]3 years ago
4 0

Answer:

$6,000

Explanation:

Since this sale and the exercise of the options didn't occur in the same year, we must make an adjustment for AMT.

In calculating alternative minimum taxable income (AMT), a taxpayer must add or subtract amounts from regular taxable income due to the different treatment of certain tax items for AMT.

In the year 2019:

market price of the stock = $250  

Liza acquired it at = $190,

Therefore,  

Gain = (Acquired price - market price of the stock) × no. of shares

        = ($250 - $190) × 100

        = $60 × 100 shares

        = $6,000

Liza needs to report this as income under AMT adjustments in 2019. This will be reported in for 6,251.

You might be interested in
As a general rule, a profit-maximizing restaurant owner employs each factor of production up to the point at which the value of
Juliette [100K]

Answer:

A. last; equal to

Explanation:

Marginal product of labour is the change in total output as a result of a change in quantity of labour employed.

A profit maximising firm would produce up to a point where the marginal product of last factor enjoyed in equal to the factor's price.

The marginal cost of Labour should equal to the marginal product of labour

4 0
3 years ago
A listing on eBay featured a refurbished iMac desktop computer; interested buyers all ranged in age from teenagers to adults wit
Hatshy [7]

Based on the ages of those <em>showing interest</em>, these buyers were likely from the generational cohort of:

  • Gen Y

<h3>What is an Age Group?</h3>

This refers to the group of people who are of similar age ranges which were born during a particular period and today we can say some are Millennials, Gen Z, etc.

With this in mind, we can see that based on the eBay listing, there was the listed sale for an item and because the interested buyers were from an age group which was made up of teenagers, we can state that they were the Gen Y.

Read more about age group here:
brainly.com/question/16180558

4 0
2 years ago
"when buying or selling a futures contract, the trader commits what amount of funds"
Nadusha1986 [10]
When buying or selling a futures contract, the trader commits what amount of funds the amount of the initial margin. A futures contract is a legal agreement to buy or sell assets, mainly commodities, at a set price but it will be delivered and paid for later. Based on the definition of a futures contract, the trader will have to commit to the initial amount that was set to be traded when the legal agreement was made. 
8 0
3 years ago
What is true about credit scores
Arada [10]
You can make them good by buying things with your credit card for little amounts of money and paying the bill right away!
And they allow you to buy houses and cars and qualify for things for cheaper...if you have the better credit you're going to get the house because you show you're responsible with your money.
8 0
3 years ago
Imagine that before black diamond initiated its greenfield venture in zhouhai, china, peter and wim asked for your advice. what
Nadya [2.5K]
<span>A green field investment or venture is a foreign direct investment known as FDI. If a company decides to go the FDI route, they are building their operations within a foreign country from start to finish. They will often build many distribution warehouses, offices and living areas for their workers that go to the foreign country to work or those within the foreign country working for the parent company. </span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • Inventory records for Dunbar Incorporated revealed the following: Date Transaction Number of Units Unit Cost Apr. 1 Beginning in
    15·1 answer
  • A career pathway is:
    7·1 answer
  • What is economical of scale?
    13·1 answer
  • Ayayai Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend
    6·1 answer
  • ___ is a method for developing the shortest schedule when the number or amount of available resources is fixed. a. Resource eval
    15·1 answer
  • Mike Karanikolas wants to enter the French market with his usual strategy of using influencers. Two influencers are considered t
    10·1 answer
  • This technique is an iterative process that identifies and defines the work to be completely accomplished in the near term, and
    15·1 answer
  • The maturity date of a note receivable: Multiple Choice
    7·1 answer
  • On December 15, 2016, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2017, of $0.94
    9·1 answer
  • : Identify your top four work values. Work values are the elements of
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!