Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

question 132

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.If Caroline sells the stock on September 5,2017 for $300 per share,she must recognize

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Definitions:

Autism

A developmental disorder characterized by difficulties with social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Awareness

The state of being conscious or knowledgeable about something, often relating to social issues or personal sensitivities.

Education for All Handicapped Children Act

a law enacted in 1975 in the United States to ensure that children with disabilities have the opportunity to receive a free appropriate public education, just like other children.

Individuals with Disabilities Education Act

A U.S. law that ensures students with disabilities are provided with a Free Appropriate Public Education (FAPE) that is tailored to their individual needs.