Essay
Suzanne received 20 ISOs (each option gives her the right to purchase 20 shares of stock for $12 per share)at the time she started working, when the stock price was $13 per share.Three years later, when the share price was $23 per share, she exercised all of her options.If Suzanne holds the shares for two additional years and sells them when the market price is $30, how much gain will Suzanne recognize on the sale and how much tax will she pay assuming her marginal tax rate is 35 percent?
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$7,200 and $1,080.
The gain realized is ...View Answer
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Correct Answer:
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The gain realized is ...
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