Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

question 11

Multiple Choice

Martin Corporation granted a nonqualified stock option to employee Caroline on January 1,2012.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 1,2015 when the stock's FMV was $250.Caroline sells the stock on September 5,2016 for $300 per share.Martin Corporation will be allowed a deduction of

• A)$150,000 in 2012.
• B)$100,000 in 2015.
• C)$50,000 in 2016.
• D)$100,000 in 2015 and $50,000 in 2016.

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Definitions:

Type C Personality

A personality style characterized by detail-oriented, introverted individuals who may have a propensity for perfectionism and caution.

Stress Perceptions

How individuals understand and interpret stress, which can vary greatly depending on personal experiences, coping skills, and resilience levels.

Stress-Release Programs

Initiatives or activities specifically designed to reduce stress and improve individuals' mental health.

Disease Prevention

Activities or measures taken to prevent the onset or reduce the severity of illnesses and diseases in individuals or populations.