In March 2016, Serengeti exercised an ISO that had been granted by his employer, Thunder Corporation, in

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In March 2016, Serengeti exercised an ISO that had been granted by his employer, Thunder Corporation, in December 2013. Serengeti acquired 5,000 shares of Thunder stock with a strike price of $65 per share. The fair market value of the stock at the date of exercise was $90 per share. Determine Serengeti's AMT adjustment related to these events:
a. For 2013.
b. For 2016.
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
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South Western Federal Taxation 2017 Comprehensive

ISBN: 9781305874169

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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