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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
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B. | $10,000 in 2016
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C. | $25,000 in 2018
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D. | $27,000 in 2019
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E. | $30,000 in 2018 |
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