On January 1, 20x0, Ralph was awarded 15,000 ISOs at an exercise price of $3 per share when the fair market value of the stock was equal to $3. On April 17, 20x1, Ralph exercised all of his ISOs when the fair market value of the stock was $5 per share. At the date of exercise, what are the tax consequences to Ralph? $0 W2 income; $30,000 AMT adjustment $0 W2 income; $75,000 AMT adjustment $30,000 ordinary income; $30,000 AMT adjustment $75,000 ordinary income;
On January 1, 20x0, Ralph was awarded 15,000 ISOs at an exercise price of $3 per share when the fair market value of the stock was equal to $3. On April 17, 20x1, Ralph exercised all of his ISOs when the fair market value of the stock was $5 per share. At the date of exercise, what are the tax consequences to Ralph? $0 W2 income; $30,000 AMT adjustment $0 W2 income; $75,000 AMT adjustment $30,000 ordinary income; $30,000 AMT adjustment $75,000 ordinary income;
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 25P
Related questions
Question
On January 1, 20x0, Ralph was awarded 15,000 ISOs at an exercise price of $3 per share when the fair market value of the stock was equal to $3. On April 17, 20x1, Ralph exercised all of his ISOs when the fair market value of the stock was $5 per share. At the date of exercise, what are the tax consequences to Ralph?
$0 W2 income; $30,000 AMT adjustment
$0 W2 income; $75,000 AMT adjustment
$30,000 ordinary income; $30,000 AMT adjustment
$75,000 ordinary income; $0 AMT adjustment
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT