Question
Mark received 10 ISOs (each option gives him the right to purchase 18 shares of Hendricks Corporation stock for $8 per share) at the time
Mark received 10 ISOs (each option gives him the right to purchase 18 shares of Hendricks Corporation stock for $8 per share) at the time he started working for Hendricks Corporation five years ago when Hendrickss stock price was $5 per share. Now that Hendrickss share price is $35 per share, Mark intends to exercise all of his options and hold all of his shares for more than one year. Assume that more than a year after exercise, Mark sells the stock for $35 a share. (Enter all amounts as positive values. Leave no answers blank. Enter zero if applicable.) a. What are Marks taxes due on the grant date, the exercise date, and the date he sells the shares, assuming his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent?
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