Answer Happy

Exercise 19-22 (Algorithmic) (LO. 8, 9) Zaire Corporation granted an 150 for 275 shares of its stock to Bruno on July 20, 2020, for services rendered. The option price was $700 and the fair market value was $700 on the date of the grant. Bruno exercised the option on September 1, 2020, when the fair market value of the stock was $1,050 per share. He sells the stock on November 30, 2021, for $1,575 per share. a. What is the amount of the AMT adjustment item that Bruno has on the exercise date? 191,800 x b. What is Bruno's long-term capital gain on the sale of the stock in 2021? 96,250 x Feedback Check My Work A stock option gives an individual the right to purchase a stated number of shares of stock from a corporation at a certain price specified period of time. The optionee must be under no obligation to purchase the stock, and the option may be revocable by corporation. The option must be in writing, and its terms must be clearly expressed