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IIn 2 0 2 3 , Reya exercised an incentive stock option that had been granted to her in 2 0 2 0 by her
IIn Reya exercised an incentive stock option that had been granted to her in by her employer, Weather Corporation. Reya acquired shares of Weather stock for the option price of $ per share. The rights in the stock become freely transferable and not subject to a substantial risk of forfeiture in The fair market value of the stock at the date of exercise was $ per share. Reya sells the stock for $ per share later in If an amount is zero, enter a What is the amount of Reya's AMT adjustment in What is her recognized gain on the sale for regular tax and for AMT purposes in In Reya has a positive AMT adjustment of $ Her recognized gain on the sale for regular income tax is $ and $ for AMT purposes. As a result, Reya has a negative AMT adjustment of $ in Feedback Check My Work Incentive stock options ISOs are granted by employers to help attract new personnel and retain those already employed. At the time an ISO is granted, the employer corporation sets an option price for the corporate stock. If the value of the stock increases during the option period, the employee can obtain stock at a favorable price by exercising the option. b How would your answers in a change if Reya had sold the stock in rather than Reya has a $ AMT adjustment in For regular tax purposes, Reya would recognize $ of ordinarycompensation income and a $ shortterm capital gain.
IIn Reya exercised an incentive stock option that had been granted to her in by her employer, Weather Corporation. Reya
acquired shares of Weather stock for the option price of $ per share. The rights in the stock become freely transferable and not
subject to a substantial risk of forfeiture in The fair market value of the stock at the date of exercise was $ per share. Reya sells
the stock for $ per share later in
If an amount is zero, enter
a What is the amount of Reya's AMT adjustment in What is her recognized gain on the sale for regular tax and for AMT purposes in
In Reya has a positive AMT adjustment of $
Her recognized gain on the sale for regular income tax is
$
and $
for AMT purposes. As a result, Reya has a negative AMT adjustment of
$
in
Feedback
Check My Work
Incentive stock options ISOs are granted by employers to help attract new personnel and retain those already employed. At the time an ISO is
granted, the employer corporation sets an option price for the corporate stock. If the value of the stock increases during the option period, the
employee can obtain stock at a favorable price by exercising the option.
b How would your answers in a change if Reya had sold the stock in rather than
Reya has a $
AMT adjustment in For regular tax purposes, Reya would recognize $
of
ordinarycompensation income and a $
shortterm capital gain.
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