Mirasol Corporation Granted an Incentive Stock Option to Employee Josephine

question 72

Multiple Choice

Mirasol Corporation granted an incentive stock option to employee Josephine two years ago.The option price was $150 and the FMV of the Mirasol stock was also $150 on the grant date.The option allowed Josephine to purchase 160 shares of Mirasol stock.Josephine exercised the option this year when the stock's FMV was $250.Unless otherwise stated,assume Josephine is a qualifying employee.The results of the above transactions to Mirasol Corporation will be

• A)no compensation deduction.
• B)a compensation deduction of $16,000 on the grant date.
• C)a tax preference item of $16,000 on the exercise date.
• D)a compensation deduction of $16,000 on the exercise date.

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Definitions:

Batterer's Attitudes

The beliefs and perceptions held by individuals who inflict physical, emotional, or sexual abuse on their partners, often justifying their abusive behavior.

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A pattern of behavior by one partner in a relationship aiming to control or harm the other, encompassing physical, sexual, emotional, and psychological abuse.

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The statistical metric that measures the number of suicides occurring within a given population during a specified period of time.

Males

Biological gender characterized by XY chromosomes, typically associated with specific sexual and reproductive anatomy.