CIRCLE ANSWERS FOR BOTH PARTS

[The following information applies to the questions displayed below.] 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 receives from the options exercise. Note: Enter all amounts as positive values, Leave no answers blank. Enter zero if applicable. Problem 12-31 Part a (Static) a. What ate 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? Antonio received 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 positive values. Leave no answers blank. Enter zero if applicable. roblem 12-31 Part b (Static) What are Zorro's tax consequences on the grant date, the exercise date, and the date Antonio solls the shares