In 2005, Collies Exercised an Incentive Stock Option (ISO), Acquiring

question 71

Multiple Choice

In 2005, Collies exercised an incentive stock option (ISO) , acquiring 150 shares of stock at an option price of $75 per share (fair market value at the date of exercise was $130 per share) . In 2014, the rights in the stock become freely transferable (fair market value is still $130 per share) . Which of the following statements is incorrect?

• A) Collis has no AMT adjustment from the ISO in 2011.
• B) Collis has no taxable income from the ISO in 2011.
• C) Collis has an AMT basis of $19,500 in the stock.
• D) Collis has an income tax basis of $11,250 in the stock.
• E) All of the above are correct.

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Brand Team

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Influence and Power

The capacity or ability of individuals or groups to effect change or command attention and obedience.

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Brand Team

A group of individuals within a company responsible for building and maintaining the brand identity, strategy, and execution.