Question
Inacio received 40 ISOs (each option gives him the right to purchase 20 shares of Toro, Inc. stock for $3 per share) at the time
Inacio received 40 ISOs (each option gives him the right to purchase 20 shares of Toro, Inc. stock for $3 per share) at the time he started working for Toro, Inc. six years ago (Grant Date). Toros share price was $3 per share at the time. With Toros share price now $50 per share five years later, Inacio exercised all of his options. He waited just over one more year and then sold all the shares he received from the options exercise at $60 per share. Assume Inacio's ordinary income tax rate is 35% and his LTCG rate is 15%. Fill in the blanks with whole numbers, don't use any dollar signs, periods, or commas:
At the Grant Date, Inacio owes _________ in tax.
At the Exercise Date, Inacio owes ______ in tax.
At the Sale Date, Inacio owes __________ in tax.
Toro, Inc. will ultimately receive a deduction of ___________ related to the ISOs.
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