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Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter Corporation stock for $17 per share) at the time

Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter Corporation stock for $17 per share) at the time he started working for Cutter Corporation three years ago. Cutters stock price was $17 per share. Yost exercised all of his options when the share price was $26 per share. Two years after acquiring the shares, he sold them at $53 per share. (Input all amounts as positive values. Leave no answer blank. Enter zero if applicable.)

Assume that Yosts options were exercisable at $22 and expired after five years. If the stock only reached $20 during its high point during the five-year period, what are Yosts tax consequences on the grant date, the exercise date, and the date the shares are sold, assuming his ordinary marginal rate is 35 percent and his long-term capital gains rate is 15 percent?

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Income Amount Taxes Due Grant date Exercise date Sale date

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