Yost received 300 NQOs (each option gives Yost the right to purchase 10 shares of Cutter Corporation stock for $24 per share). At the time he started working for Cutter Corporation three years ago, Cutter's stock price was $24 per share. Yost exercised all of his options when the share price was $48 per share. Two years after acquiring the shares, he sold them at $74 per share.

Note: Input all amounts as positive values. Leave no answer blank. Enter zero if applicable.

Required:

A) What are Yost's taxes due on the grant date, exercise date, and sale date, assuming his ordinary marginal rate is 35 percent and his long-term capital gains rate is 15 percent?

Taxes Due

Grant date $0selected answer correct

Exercise date$72,000selected answer incorrect

Sale date$25,200selected answer incorrect

B) What are Cutter Corporation's tax consequences (amount of deduction and tax savings from deduction) on the grant date, the exercise date, and the date Yost sold the shares?

Amount of Deduction Tax Savings

Grant Date 0 correct 0 correct

Exercise date 18,000 incorrect 0 incorrect

sales date. 0 correct 0 correct