in 2016 Chen Corporation granted nonqualified stock options to Monica to buy 1,000 shares of Chen stock at $15 per share exercisable for six years.
in 2016 Chen Corporation granted nonqualified stock options to Monica to buy 1,000 shares of Chen stock at $15 per share exercisable for six years. At the date of grant, the stock was selling for $10 per share. In 2018 Monica exercises the options when the market price is $40 per share. In 2019, Monica sells the 1,000 shares of stock for $42 per share. How much deduction does Chen Corporation get and in which year?
| A. | $5,000 in 2016
| |
| B. | $10,000 in 2016
| |
| C. | $25,000 in 2018
| |
| D. | $27,000 in 2019
| |
| E. | $30,000 in 2018 |
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Authors: Michael H. Granof, Philip W. Bell
4th Edition
013321852X, 978-0133218527
