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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.

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Victoria’s 2021 tax return was due on April 15, 2022, but she did not file it until June 12, 2022. Victoria did not file an exte
Vesnalui [34]

Based on the information the amount of penalty that Victoria will have to pay is $850.

<h3>Penalty amount:</h3>

Using this formula

Penalty amount=(Tax return×Tax rate)×2

Where:

Tax return=$8,500

Tax rate=5%

Let plug in the formula

Penalty amount=( $8,500 x 5%) x 2

Penalty amount=$425×2

Penalty amount=$850

Inconclusion the amount of penalty that Victoria will have to pay is $850.

Learn more about penalty here:brainly.com/question/1178265

8 0
2 years ago
A business will usually choose to produce a new product inan existing facility if the cost is less that the cost of building a n
coldgirl [10]

Answer:

E) existing factory has enough capacity to handle demand for the new products as well as the existing products.

Explanation:

If the existing factory doesn't have enough capacity to produce both the new product and existing ones, then if doesn't matter if the technology used is the same, or the new product is an extension of an existing product line, or existing human resources possess the abilities and knowledge required, or even if the product design is already complete or not.

If the factory's production capacity cannot handle the new product, then the company needs to expand the existing factory's production capacity or build a new facility.

4 0
3 years ago
"Which of the following is a support activity in a firm's value chain? A) Inbound logistics B) Operations C) Sales and marketing
Pepsi [2]

Answer:

The technology is a support activity in a firm's value chain.

Explanation:

Value chain analysis means the analysis which adds the value to the organization. It can be categorized in two activities - primary activities and support activities. This value chain analysis is propounded by Porter.

The primary activities includes inbound & outbound logistics, operations, Marketing & sales and service whereas support activities includes firm infrastructure, human resource management, technology , and procurement.

Thus,  the technology is a support activity in a firm's value chain.

4 0
3 years ago
The cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial acc
Alekssandra [29.7K]

Answer:

False

Explanation:

The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.

For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.

Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.

3 0
3 years ago
A Fraternal Benefit Society has each of the following characteristics EXCEPT
Doss [256]

Answer:

Answer is option C, i.e. Exists for profit.

Explanation:

A fraternity benefit society or benefit society are incorporated body that exist to provide benefits and insurance during any sundry difficulties to its various registered member. These societies do not have any beforehand capital stock with them. And also these societies do not operate for profit motive as their ultimate help is to provide financial support to its members in times of need.

3 0
3 years ago
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