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Fill in the boxes. Do not give a written answers. Thanks Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares
Fill in the boxes. Do not give a written answers. Thanks
Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter Corporation stock for $27 per share). At the time he started working for Cutter Corporation three years ago, Cutter's stock price was $27 per share. Yost exercised all of his options when the share price was $54 per share. Two years after acquiring the shares, he sold them at $83 per share. Note: Input all amounts as positive values. Leave no answer blank. Enter zero if applicable. What are Yost's taxes due on the grant date, exercise date, and sale date, assuming his ordinary marginal rate is 35 percent and his long-term capital gains rate is 15 percent? What are Cutter Corporation's tax consequences (amount of deduction and tax savings from deduction) on the grant date, the exercise date, and the date Yost sold the shares? Assume that Yost's options were exercisable at $32 and expired after five years. If the stock only reached $30 during its high point during the five-year period, what are Yost's tax consequences on the grant date, the exercise date, and the date the shares are sold, assuming his ordinary marginal rate is 35 percent and his long-term capital gains rate is 15 percentStep by Step Solution
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