Return to the facts of problem 64. On November 30, 2012, when the fair market value of the stock is $30, Albert sells the stock. Determine the tax consequences to both Albert and Beaconsfield Corporation in each situation presented in problem 64.

In problem 64, On September 1, 2011, Beaconsfield Corporation grants Albert a nonqualified stock option to acquire 500 shares of the company’s stock for $8 per share. The fair market value of the stock on the date of grant is $14. Determine the tax consequences to both Albert and Beaconsfield Corporation in each of the following situations:

a. The option has a readily ascertainable fair market value of $3 per share, and Albert exercises the option on February 15, 2012, when the FMV of the stock is $16.

b. The option does not have a readily ascertainable fair market value, and Albert exercises the option on February 15, 2012, when the FMV of the stock is $16.

c. The option has a readily ascertainable fair market value of $3 per share but is subject to a substantial risk of forfeiture, and Albert does not make a Section 83(b) election. When the restrictions lapse on September 30, 2012, the fair market value of the stock is $20 per share.

d. The option has a readily ascertainable fair market value of $3 per share but is subject to substantial risk of forfeiture, and Albert makes a Section 83(b) election.