Required information

$[$The following information applies to the questions

displayed below.$]$

Antonio received $40$ ISOs $($each option gives him the

right to purchase $20$ shares of Zorro stock for $$3$ per

share$)$ at the time he started working for Zorro

Corporation six years ago. Zorro's stock price was $$3$

per share at the time. Now that Zorro's stock price is

$$50$ per share, Antonio intends to exercise all of his

options and immediately sell all the shares he receives

from the options exercise.

Note: Enter all amounts as positive values. Leave no

answers blank. Enter zero if applicable.

a$.$ What are Antonio's taxes due on the grant date, the exercise date,

and the date the shares are sold, assuming his ordinary marginal

What are the cash flow effects of these transactions to Antonio, assuming his ordinary marginal rate is $24$ percent and his long$-$term capital gains rate is $15$ percent? $!$

Required information

$[$The following information applies to the questions

displayed below.$]$

Antonio received $40$ ISOs $($each option gives him the

right to purchase $20$ shares of Zorro stock for $$3$ per

share$)$ at the time he started working for Zorro

Corporation six years ago. Zorro's stock price was $$3$

per share at the time. Now that Zorro's stock price is

$$50$ per share, Antonio intends to exercise all of his

options and immediately sell all the shares he receives

from the options exercise.

Note: Enter all amounts as positive values. Leave no

answers blank. Enter zero if applicable.

c$.$ What are the cash flow effects of these transactions to Antonio,

assuming his ordinary marginal rate is $24$ percent and his long$-$term

capital gains rate is $15$ percent?