Multiple Choice
ABC Corporation awarded John 1,000 options in 2014; each option allows him to purchase one share of ABC Corporation stock for $20. The ABC stock is selling for $18 per share at the grant date. In 2016, John exercises the options when the stock's selling price was $40 per share. In 2018, John sells the stock for $50 per share. What is ABC Corporation's deduction if they are nonqualified stock options?
A) $0
B) $18,000 in 2016
C) $20,000 in 2016
D) $40,000 in 2018
Correct Answer:
Verified
Correct Answer:
Verified
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