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Imelda has accepted a job as a key executive. In her multi - million - dollar compensation negotiations, she elects to receive a substantial portion
Imelda has accepted a job as a key executive. In her multimilliondollar compensation negotiations, she elects to receive a substantial portion of her compensation in incentive stock options that she plans to exercise in qualifying dispositions. She will be taxed at longterm capital gain rates. Why would she make this election instead of taking her compensation entirely as wages?Select answer from the options belowHer longterm capital gain rate is higher than her marginal tax rate.Her W wages is taxed is at a higher rate than her effective tax rate.Her longterm capital gain rate is lower than her marginal tax rate.Stock held over a year is not subject to taxation.
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