Multiple Choice
In 2011, Mr. Delgado exercised an option to purchase 1,000 shares of his employer's stock for $29 per share when the market price was $65 per share. This year, Mr. Delgado sold the stock for $80 per share. Which of the following statements is false?
A) If the option was an ISO, Mr. Delgado recognized a $51,000 gain on sale.
B) If the option was nonqualified, Mr. Delgado recognized a $15,000 gain on sale.
C) If the option was an ISO, Mr. Delgado has a $36,000 AMT preference item this year.
D) None of these choices are false.
Correct Answer:
Verified
Correct Answer:
Verified
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