Chapter 34 - TOOLS & TECHNIQUES OF EMPLOYEE BENEFIT AND...

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9th Edition College Course Materials Deanna L. Sharpe, Ph.D., CFP®, CRPC®, CRPS® Associate Professor CFP® Program Director Personal Financial Planning Department University of Missouri-Columbia Please Note : Correct answers for each question are indicated in bold type. After each question, the number of the page containing information relevant to answering the question is given. When a calculation is necessary or the reasoning behind a given answer may be unclear, a brief rationale for the correct answer is also given. Part B: Employee Benefit Planning Equity Options Chapter 34: Stock Option True/False 34.1 Stock Option Plans must comply with nondiscrimination coverage rules. 34.2 An executive who receives a stock option must always include in his or her taxable income the fair market value of the stock in the year the stock option was granted. 34.3 If a stock option has no readily ascertainable fair market value at the time it is transferred to an executive, there is no taxable income to the executive at the date of the grant. Answers: 34.1 False [p. 321] 34.2 False [pp. 322-323] 34.3 True [p. 322] Multiple Choice 34.4 Disadvantages of a stock option include which of the following? a.
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Chapter 34 - TOOLS & TECHNIQUES OF EMPLOYEE BENEFIT AND...

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