Question
Marvin, the vice president of Lavender, Inc., exercises stock options for 100 shares of stock in March 2020. The stock options are incentive stock options
Marvin, the vice president of Lavender, Inc., exercises stock options for 100 shares of stock in March 2020. The stock options are incentive stock options (ISOs). Their exercise price is $20 and the fair market value on the date of exercise is $28. The options were granted in March 2016 and all restrictions on the free transferability had lapsed by the exercise date.
a. If Marvin sells the stock in December 2014 for $3,000, his AMT adjustment in 2020 is a negative adjustment of $800.
- If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is a positive adjustment of $800
c. If Marvin sells the stock in December 2021 for $3,000, his AMT adjustment in 2021 is a negative adjustment of $1,000.
d. If Marvin sells the stock in December 2020 for $3,000, his AMT adjustment in 2020 is $0.
e. None of these.
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Portfolio Of Marketing Audits Company Self Assessment Audits
Authors: David Crosby
1st Edition
1902433157, 978-1902433158
