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Please help! Mark received 10 ISOs at the time he started working for Hendricks Corporation five years ago, when Hendricks's price was $5 per share
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Mark received 10 ISOs at the time he started working for Hendricks Corporation five years ago, when Hendricks's price was $5 per share (each option gives him the right to purchase 10 shares of Hendricks Corporation stock for $5 per share). Now that Hendricks's 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. What are Mark's tax consequences 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? (Leave no answer blank. Enter zero if applicable.) AMT Income Regular Taxable Income or Tax Due Capital Gains $ 3,000 $ $ 3,000 $ $ 3,000 $ $ $ Grant date Exercise date Date of sale olo $ 3,000 3,000 3,000 0 $Step by Step Solution
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