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27. Cammie received 100NQOs (each option provides a right to purchase 10 shares of MNL stock for $10 per share). She started working for MNL

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27. Cammie received 100NQOs (each option provides a right to purchase 10 shares of MNL stock for $10 per share). She started working for MNL Corporation four years ago (5/1/Y1) when MNL's stock price was $8 per share. Now (8/15/Y5) that MNL's stock price is $40 per share, she intends to exercise all of her options. After acquiring the 1,000 MNL shares with her stock options, she held the shares for over one year and sold (on 10/1/Y6) them at $60 per share. a. What are Cammie's taxes due on the grant date (5/1/Y1), exercise date (8/15/Y5), and sale date (10/1/Y6), assuming her ordinary marginal rate is 32 percent and her longterm capital gains rate is 15 percent? b. What are MNL Corporation's tax consequences on the grant date (5/1/Y1), exercise date (8/15/Y5), and sale date (10/1/Y6) ? c. Complete Cammie's Form 8949 and Schedule D for the year of sale. Also assume that the sale transaction of the MNL Corporation stock was not reported to Cammie on a Form 1099-B

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