Employees Receiving Nonqualified Stock Options Recognize Ordinary Income at the Grant

question 24

True/False

Employees receiving nonqualified stock options recognize ordinary income at the grant date or exercise date if there is a readily ascertainable fair market value.

---

Definitions:

Distribution Sites

Locations where goods are stored and distributed to retailers or directly to customers.

Storage Sites

Locations where goods or materials are held temporarily or permanently before they are distributed to the final consumer.

Excess Capacity

The situation where a company's production capabilities exceed the current demand for its products or services, leading to underutilized resources.

Utilization Facility

A facility used primarily for the processing, conversion, or treatment of resources or materials, often in the energy sector.