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On November 19,2011,Rex Is Granted a Nonqualified Stock Option to Purchase

Question 21

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On November 19,2011,Rex is granted a nonqualified stock option to purchase 100 shares of Tan Company.On that date,the stock is selling for $8 per share,and the option price is $9 per share.Rex exercises the option on August 21,2012,when the stock is selling for $10 per share.Five months later,Rex sells the shares for $11.50 per share.
On November 19,2011,Rex is granted a nonqualified stock option to purchase 100 shares of Tan Company.On that date,the stock is selling for $8 per share,and the option price is $9 per share.Rex exercises the option on August 21,2012,when the stock is selling for $10 per share.Five months later,Rex sells the shares for $11.50 per share.

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