Exam 3 Problems

Exam 3 Problems - N QO ordinary in exercise, capital in...

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NQO – ordinary in exercise, capital in sell Description (1) Shares acquired (2) Exercise price (3) Cash needed to exercise (1) x (2) (4) Market price (5) Market value of shares (1) x (4) (6) Bargain Element (ordinary income) (5) – (3) (7) Marginal Tax Rate Tax due in year of exercise (6) x (7) (7) Shares acquired with NQOs (1) (8) Market price at sale (9) Amount Realized (7) x (8) (10) Basis (5) (11) Long-term capital gain (9) – (10) (12) Marginal Tax Rate Tax due in year of exercise (11) x (12) Iso Description (1) Shares acquired (2) Exercise price (3) Cash needed to exercise (1) x (2) (4) Market price (5) Market value of shares (1) x (4) (6) Bargain Element (AMT preference) (5) – (3) (7) Shares acquired with NQOs (1) (8) Market price at sale (9) Amount Realized (7) x (8) (10) Basis (3) above (11) Long-term capital gain (9) – (10) (12) Marginal Tax Rate Tax due in year of sale (11) x (12) Monthly life insurance (1) amount of life insurance (2) tax free benefit limit (50,000 = statutory limit)
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This note was uploaded on 08/22/2011 for the course ACIS 3314 taught by Professor Hicks during the Spring '09 term at Virginia Tech.

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Exam 3 Problems - N QO ordinary in exercise, capital in...

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