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5. Debra received 200 Non Qualified Stock Options (NQO) which each option provides a right to purchase 10 shares of BK stock for $15 per

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5. Debra received 200 Non Qualified Stock Options (NQO) which each option provides a right to purchase 10 shares of BK stock for $15 per share. She started working for BK Corp. four years ago on (5/1/YI) when the stock price was $11 per share. Now (8/15/Y5) that BK stock price is $55 per share, she intends to exercise all of her options. After acquiring the 2,000 shares with her stock options, she held them on (10/1/Y6) after holding them for over a year and received $60 a share for them. a. What are Debra's taxes due on the grant date (5/1/Y1). exercise date (8/15/Y5) and sale date of (10/1/Y6), as she is in the 35% marginal rate and her long term capital gains tax rate is 15%. b. What are BK Corp's tax consequences on the grant date (5/1Y1), exercise date (8/15/85), and sales date of (10/1/Y6)? c. Would you answers be different if these were incentive Stock Options instead of NQO's for Maisie? 5. Debra received 200 Non Qualified Stock Options (NQO) which each option provides a right to purchase 10 shares of BK stock for $15 per share. She started working for BK Corp. four years ago on (5/1/YI) when the stock price was $11 per share. Now (8/15/Y5) that BK stock price is $55 per share, she intends to exercise all of her options. After acquiring the 2,000 shares with her stock options, she held them on (10/1/Y6) after holding them for over a year and received $60 a share for them. a. What are Debra's taxes due on the grant date (5/1/Y1). exercise date (8/15/Y5) and sale date of (10/1/Y6), as she is in the 35% marginal rate and her long term capital gains tax rate is 15%. b. What are BK Corp's tax consequences on the grant date (5/1Y1), exercise date (8/15/85), and sales date of (10/1/Y6)? c. Would you answers be different if these were incentive Stock Options instead of NQO's for Maisie

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