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QUESTION 7 The following information is for questions seven through nine. In 2010, CSUEB granted an incentive stock option (ISO) to Guillermo Jess Montaez to
QUESTION 7 The following information is for questions seven through nine. In 2010, CSUEB granted an incentive stock option (ISO) to Guillermo Jess Montaez to buy 10,000 shares of CSUEB stock at $10 per share for 10 years. At date of grant, CSUEB stock was trading on the Pyongyang Stock Exchange for $9.00 per share. CSUEB recorded $25,000 compensation expense for the estimated value of the option on its income statement. In 2019, Guillermo Jess Montaez exercised the option when CSUEB's stock was trading at $25 per share. How much income did Sr. Montaez recognize in 2010 and 2019 because of the ISO? OA 2010 2019 $0 $150,000 B. 2010 $25,000 2019 $125,000 2010 SO 2019 $125,000 OD. 2010 $25,000 2019 $150,000 2019 E. 2010 so 50
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