Five Years Ago, Devin Corporation Granted Laura Nonqualified Stock Options

question 16

Multiple Choice

Five years ago, Devin Corporation granted Laura nonqualified stock options to buy 1,000 shares of Devin stock at $22 per share exercisable for six years.At the date of grant, the stock was selling for $19 per share.Laura exercised the options this year when the market price was $28 per share.How much income must Laura recognize from the exercise of the options?

• A)zero
• B)$3,000
• C)$6,000
• D)$22,000

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Definitions:

Occipital Lobe

Situated in the rear part of the brain, this segment of the cerebral cortex is in charge of interpreting visual inputs.

Anatomy

The branch of biology concerned with the study of the structure of organisms and their parts.

Left-Hemisphere Damage

Injury or harm to the left side of the brain, often affecting language, analytical, and logical processing abilities.

Gestures

Non-verbal communication methods involving bodily movements, often of the hands and arms, that convey meanings, emotions, or instructions without using words.