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
leva [86]
3 years ago
6

Marvin, the vice president of Lavender, Inc., exercises a stock option to purchase 100 shares of stock in March 2020. The stock

options are incentive stock options (ISOs). Their exercise price is $20 and the fair market value on the date of exercise is $28. The options were granted in March 2016 and all restrictions on the free transferability had lapsed by the exercise date.
a. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is a positive adjustment of $800.
b. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is $0.
c. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is a negative adjustment of $800.
d. If Marvin sells the stock in December 2021 for $3,000, his AMT adjustment in 2021 is a negative adjustment of $1,000.
Business
1 answer:
Naily [24]3 years ago
7 0

Answer:

None of the answer is correct.

Explanation:

When Marvin purchase stock in March 2020 at a price of $28. The exercise price for the stock is $20. When Marvin will sell the stock at the exercise price he will gain on the sale of the stock. AMT is the difference or spread between the stock exercise price and its underlying fair market value.

You might be interested in
What happens if thionyl chloride and adipic acid sit at room temperature for too long?
EleoNora [17]
<span>all that will happen is It will be converted into an alkyl chloride</span>
7 0
2 years ago
How do financial managers tend to value all assets in the same terms?a. By evaluating cash flowsb. By qualifying cash flowsc. By
sammy [17]

Answer:

a. By evaluating cash flows.

Explanation:

In Economics, an asset can be defined as any resources of economic value or items of monetary value that is being owned by an individual, country or business organization to generate income and derive benefits from.

Generally, assets can be classified broadly into four (4) categories and these are; capital assets, fixed assets, intangible assets, and financial assets.

Financial managers tend to value all assets in the same terms by evaluating cash flows.

Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three (3) main components of the cash flow; investing, operating and financing.

5 0
3 years ago
Strike offers to sell Bailey one thousand shirts for a stated price. The offer declares that shipment will be made by Dependable
Vikentia [17]

Answer:

We can assume that both Strike and Bailey are American companies and that they operate in that US under the UCC rules. Under UCC rules they are both considered merchants since they trade with the goods related to the contract.  Strike's offer was very precise and Bailey's acceptance was made in a reasonable manner which can be considered a valid acceptance.

The only difference exists with the shipping company, which the UCC rules consider a conflicting term and Strike should have either objected or ratified it before sending the goods. Since Strike didn't object Bailey's terms, then by using a different truck company it is breaching the contract.

8 0
2 years ago
True or false: most riders cannot tell the difference between low-risk behavior and high-risk behavior.
EleoNora [17]

The given statement that most riders cannot tell the difference between low-risk behavior and high-risk behavior is FALSE.

<h3>What is high-risk behavior.?</h3>

This refers to the type of behavior that a person engages in that could lead to severe consequences.

Hence, we can see that The given statement that most riders cannot tell the difference between low-risk behavior and high-risk behavior is FALSE and this is because they know when they put themselves in danger and when they are following protocols and guidelines about safety.

Read more about high-risk behavior here:

brainly.com/question/3711204

#SPJ1

4 0
2 years ago
Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $406,000. At the time
Gnom [1K]

Answer:

since Percy Company's owns 80% of Song Company's stocks, we must use the equity method to record its investment in Song Company

Beginning 2014, investment in Song Company

Dr Investment in Song Company 406,000

    Cr Cash 406,000

2014, to record Song's net income

Dr Investment in Song Company 48,480

    Cr Investment revenue 48,480

2015, to record Song's net income

Dr Investment in Song Company 43,120

    Cr Investment revenue 43,120

2016, to record Song's net loss

Dr Loss on investment 45,760

    Cr Investment in Song Company 45,760

2014, to record Song's dividends

Dr Cash 19,040

    Cr Investment in Song Company 19,040

2015, to record Song's dividends

Dr Cash 40,480

    Cr Investment in Song Company 40,480

2016, to record Song's dividends

Dr Cash 29,040

    Cr Investment in Song Company 29,040

   

5 0
3 years ago
Other questions:
  • What is a migrant worker
    9·2 answers
  • How would your most recent supervisor or teacher rate your dependability compared to others?
    8·1 answer
  • Suppose a new recreational neighborhood park would cost​ $20,000, including opportunity​ costs, to construct and maintain. if​ b
    6·1 answer
  • Initially, a competitive industry that has 1,000 firms is in long-run equilibrium. Then 100 firms in the industry adopt a new te
    12·1 answer
  • When companies recruit people to promote products to friends and other contacts in exchange for free samples or other​ rewards,
    12·1 answer
  • Demand determines price entirely when A) demand is downward sloping. B) demand is perfectly inelastic.
    14·1 answer
  • Scott Bennett is preparing his balance sheet and income and expense statement for the year ending June 30, 2016. He is having di
    11·1 answer
  • Betty and Barbara own a business called Betsy. They each invest $30,000 into their business. The concept of owner’s investment i
    14·1 answer
  • A weak company culture A. celebrates change and consensual decision-making. B. produces champions of innovation and creativity.
    10·1 answer
  • The difference between the actual cost incurred and the standard cost is called the?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!