22) Ron received 11 NQOs (each option provides the right to purchase 7 shares of stock for $9 per share) at the time Ron started working when the stock price was $7 per share When the share price was $16 per share, Ron exercised all of the options Eighteen months later Ron sold all of the shares for $23 per share How much gain will Ron recognize on the sale of the shares and how much tax will Ron pay assuming a marginal tax rate of 37 percent A $0 gain and $0 tax B $1,078 gain and $216 tax C $539 gain and $199 tax D $539 gain and $108 tax 23) Dan recently received 2,000 shares of restricted stock from his employer, Maromi Corporation, when the share price was $10 per share Dan's restricted shares vested three years later when the market price was $14 Dan held the shares for slightly more than a year and sold them when the market price was $12 How much is Dan's income or loss on the sale A $4,000 gain B $0 C $4,000 loss D $2,000 loss 24) Karen recently received 2,000 shares of restricted stock from an employer, Friendly Corporation, when the share price was $10 per share Karen's restricted shares vested three years later when the market price was $14 Karen held the shares for a little more than a year and sold them when the market price was $20 What is the amount of Karen's income or loss on the vesting date A $20,000 B $28,000 C SO D $10,000

Question

22) Ron received 11 NQOs (each option provides the right to purchase 7 shares of stock for $9 per share) at the time Ron started working when the stock price was $7 per share  When the share price was $16 per share, Ron exercised all of the options  Eighteen months later Ron sold all of the shares for $23 per share  How much gain will Ron recognize on the sale of the shares and how much tax will Ron pay assuming a marginal tax rate of 37 percent  A  $0 gain and $0 tax  B  $1,078 gain and $216 tax  C  $539 gain and $199 tax  D  $539 gain and $108 tax  23) Dan recently received 2,000 shares of restricted stock from his employer, Maromi Corporation, when the share price was $10 per share  Dan's restricted shares vested three years later when the market price was $14  Dan held the shares for slightly more than a year and sold them when the market price was $12  How much is Dan's income or loss on the sale  A  $4,000 gain  B  $0  C  $4,000 loss  D  $2,000 loss  24) Karen recently received 2,000 shares of restricted stock from an employer, Friendly Corporation, when the share price was $10 per share  Karen's restricted shares vested three years later when the market price was $14  Karen held the shares for a little more than a year and sold them when the market price was $20  What is the amount of Karen's income or loss on the vesting date  A  $20,000 B  $28,000 C  SO D  $10,000

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22) Ron received 11 NQOs (each option provides the right to purchase 7 shares of stock for $9 per share) at the time Ron started

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