$24\mathrm{.}0\%$ complete

Question

Which of the following statements concerning tax considerations of nonqualified retirement plans is $($are$)$ correct?

Under IRS regulations an amount becomes currently taxable to an executive even before it is actually received if it has been $$constructively received.$$

Distributions from nonqualified retirement plans are generally subject to payroll taxes.

A$\mathrm{.}1$ only

B$\mathrm{.}2$ only

C$\mathrm{.}1$ and $2$

D$.$Neither $1$ nor $2$

At the date of the grant, Marguerite will have ordinary income of $$22.$

At the date of exercise, Marguerite will have W$-2$ income of $$8.$

At the date of sale, Marguerite will have long term capital gain of $$5.$

Marguerite$$s employer will have a deductible expense in relation to this option of $$22.$

A$\mathrm{.}3$ only

B$\mathrm{.}2$ and $3$

C$\mathrm{.}2,3,$ and $4$

D$\mathrm{.}1,2,3,$ and $4$

At the date of grant, Jackie will have ordinary income equal to $$22.$

At the date of exercise, Jackie will have W$-2$ income of $$8.$

At the date of sale, Jackie will have long$-$term capital gain of $$13.$

Jackie$$s employer will not have a tax deduction related to the grant, exercise or sale of this ISO by Jackie.