Antonio recelved $40$ ISOs $($each option gives him the right to purchase $20$ shares of Zorro stock for $$3$ per

share$)$ at the time he started working for Zorro Corporation six years ago. Zorro's stock price was $$3$ per

share at the time. Now that Zorro's stock price is $$50$ per share, Antonio intends to exercise all of his

options and Immediately sell all the shares he recelves from the options exercise.

Note: Enter all amounts as positlve values. Leave no answers blank. Enter zero If applicable.

Required:

a$.$ What are Antonio's taxes due on the grant date, the exercise date, and the date the shares are sold,

assuming his ordinary marginal rate is $32$ percent and his long$-$term capital gains rate is $15$ percent?

b$.$ What are Zorro's tax consequences on the grant date, the exercise date, and the date Antonio sells the

shares?

c$.$ What are the cash flow effects of these transactions to Antonio, assuming his ordinary marginal rate is $24$

percent and his long$-$term capital gains rate is $15$ percent?

d$.$ What are the cash flow effects to Zorro resulting from Antonio's option exercise?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

What are the cash flow effects to Zorro resulting from Antonio's option exercise?

$($NOTE: $9024,5640,37600,0,9400,7000,30000,40000$ ARE NOT CORRECT ANSWERS$)$