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Four years ago, Billie Budd was granted 5,000 stock options with an exercise price of $30. The stock price was $30 on that date. On
Four years ago, Billie Budd was granted 5,000 stock options with an exercise price of $30. The stock price was $30 on that date. On February 2 of this year, she exercised all 5,000 options at $67. On June 2 of this year, she sold 3,300 shares for $30 per share.
Which of the following statements is/are true?
- Billie will have ordinary income and long-term capital gains if she sells the stock she acquired with the options in December of next year.
- A portion of Billie's options cannot be ISOs.
- Billie will not have an AMT income adjustment if she sells the stock acquired with ISOs in June of this year.
- Billie will have additional ordinary income this year.
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