Elmer Exercises an Incentive Stock Option (ISO)in 2014 for $6,000

question 96

True/False

Elmer exercises an incentive stock option (ISO)in 2014 for $6,000 (fair market value of the stock on the exercise date is $7,600).If Elmer sells the stock later in 2014 for $8,000,the AMT positive adjustment is $1,600 and the AMT negative adjustment is $2,000.

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Definitions:

Basket Of Goods

A fixed set of consumer products and services valued on a regular basis for purposes of tracking inflation.

CPI

The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Every Month

Refers to occurrences or measurements that happen or are evaluated on a monthly basis.

Bureau Of Labor Statistics

A U.S. government agency responsible for collecting and analyzing data related to employment, wages, and other aspects of the workforce.