15.

In 2013, Frederico exercised an employers stock option to purchase 1,000 shares of stock for $29 per share when the market price was $65 per share. This year, Frederico sold the stock for $80 per share. Which of the following statements is false?

Multiple Choice

If the option was an ISO, Frederico recognized a $51,000 gain on sale.

If the option was nonqualified, Frederico recognized a $15,000 gain on sale.

If the option was an ISO, Frederico has a $36,000 AMT preference item this year.

None of these choices are false.