Jackson Corporation Granted an Incentive Stock Option to Employee Caroline

question 26

Multiple Choice

Jackson Corporation granted an incentive stock option to employee Caroline on January 1,two years ago.The option price was $150,and the FMV of the Jackson stock was also $150 on the grant date.The option allowed Caroline to purchase 160 shares of Jackson stock.Caroline exercised the option on August 1,2014,when the stock's FMV was $250.Unless otherwise stated,assume Caroline is a qualifying employee.If Caroline sells the stock on July 5,2015 for $400 per share,she must recognize

• A)long-term capital gain of $40,000 in the year of sale.
• B)long-term capital gain of $24,000 in the year of sale.
• C)ordinary income of $16,000 on the exercise date and a long-term capital gain of $24,000 in the year of sale.
• D)ordinary income of $16,000 and a short-term capital gain of $24,000 in the year of sale.

Comprehend the process and need for Make-Table queries in creating new tables.

Learn the functionalities and uses of Append queries in adding records to tables.

Acquire knowledge on the impact of action queries on data and database structure.

Understand the use of AND and OR criteria in refining query selections.

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Definitions:

\(6^{\sqrt{2}}\)

An example of a number raised to an irrational exponent, here specifically the square root of 2, showcasing an exponential expression.

\(4e^x\)

An exponential function where the base is Euler's number (e) multiplied by 4, and \(x\) is the exponent.

Simplify

The process of altering an expression to make it easier to understand or work with, often by reducing it to its simplest form.

Simplify

The process of reducing an expression to its simplest form, making it easier to understand or solve.