Several years ago, Mr. B’s employer gave him options to purchase 2,000 shares of the employer’s stock at a price of $24
Posted: Sun Jun 05, 2022 6:36 pm
Several years ago, Mr. B’s employer gave him options to purchase
2,000 shares of the employer’s stock at a price of $24 per share.
At that time, the shares were trading at $20 per share.
The employer is a publicly traded company.
During April 2020, Mr. B exercises the entire options. At
this time, the shares are trading at $26.50 per share. During
July 2021, Mr. B sells the shares for $40 per share.
Required: Determine the tax effect of the
transactions that took place during 2020 and 2021 on Mr.
B’s Net Income For Tax Purposes (NIFTP) and Taxable
Income. Show full calculation in your Excel. Round your
answers to the nearest dollar amount.
Indicate the following figures in your calculations:
In addition, input the capital gain amount, if any, of
2021 year
2,000 shares of the employer’s stock at a price of $24 per share.
At that time, the shares were trading at $20 per share.
The employer is a publicly traded company.
During April 2020, Mr. B exercises the entire options. At
this time, the shares are trading at $26.50 per share. During
July 2021, Mr. B sells the shares for $40 per share.
Required: Determine the tax effect of the
transactions that took place during 2020 and 2021 on Mr.
B’s Net Income For Tax Purposes (NIFTP) and Taxable
Income. Show full calculation in your Excel. Round your
answers to the nearest dollar amount.
Indicate the following figures in your calculations:
In addition, input the capital gain amount, if any, of
2021 year