Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

question 63

Multiple Choice

Martin Corporation granted a nonqualified stock option to employee Caroline on January 1,2013.The option price was $150,and the FMV of the Martin stock was also $150 on the grant date.The option allowed Caroline to purchase 1,000 shares of Martin stock.The option itself does not have a readily ascertainable FMV.Caroline exercised the option on August 1,2016 when the stock's FMV was $250.Caroline sells the stock on September 5,2017 for $300 per share.Martin Corporation will be allowed a deduction of

• A)$150,000 in 2013.
• B)$100,000 in 2016.
• C)$50,000 in 2017.
• D)$100,000 in 2016 and $50,000 in 2017.

Analyze the factors contributing to a competitive edge through differentiation and cost leadership strategies.

Recognize the role of brand loyalty and product quality in competitive strategy.

Understand the role of strategic planning, implementation, and control in strategic management.

Understand the concept and types of forecasts in business strategic planning.

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