QUESTION 33 Mary received stock from her uncle on November 28. Her father paid $13,800 three years ago and its fair market value on November 28 is $12,400. Assume her father did not pay any gift tax. a. If Mary sells the stock for $15,000, what is the tax result? b. If Mary sells the stock for $12,000, what is the tax result? c. If Mary sells the stock for $13,000, what is the tax result? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI V S Paragraph Arial V 10pt > TE P O WORDS POWERED BY TINY 10 points Save Answer QUESTION 34 Hiram receives 500 incentive stock options from his employer in Year I when the underlying stock has a value of $35 per share. In Year 2, he exercises all the options at the option price of $38 when the value of the stock is $40. In Year 4, the current year, Hiram sells all 500 shares for $45. How much gross income must Luisa report in Year 1, Year 2 and in Year 4 when computing regular taxable income? What type of gain is reported? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI U S Paragraph Arial V 10pt ili . v A V TX P O WORDS POWERED BY TINY 10 points Save Answer QUESTION 33 Mary received stock from her uncle on November 28. Her father paid $13,800 three years ago and its fair market value on November 28 is $12,400. Assume her father did not pay any gift tax. a. If Mary sells the stock for $15,000, what is the tax result? b. If Mary sells the stock for $12,000, what is the tax result? c. If Mary sells the stock for $13,000, what is the tax result? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI V S Paragraph Arial V 10pt > TE P O WORDS POWERED BY TINY 10 points Save Answer QUESTION 34 Hiram receives 500 incentive stock options from his employer in Year I when the underlying stock has a value of $35 per share. In Year 2, he exercises all the options at the option price of $38 when the value of the stock is $40. In Year 4, the current year, Hiram sells all 500 shares for $45. How much gross income must Luisa report in Year 1, Year 2 and in Year 4 when computing regular taxable income? What type of gain is reported? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI U S Paragraph Arial V 10pt ili . v A V TX P O WORDS POWERED BY TINY 10 points Save