Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

question 110

Multiple Choice

Martin Corporation granted a nonqualified stock option to employee Caroline on January 1, 2011. 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, 2014 when the stock's FMV was $250. If Caroline sells the stock on September 5, 2015 for $300 per share, she must recognize

---

Definitions:

Semester

A half-year term used in academic institutions to divide the academic year, typically into two main periods of study.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through association with a primary reinforcer; also known as a secondary reinforcer.

T-Maze

A type of maze used in animal cognitive research, consisting of a choice point and two or more arms, typically to study learning, memory, or reward association.

Primary Reinforcer

An innately reinforcing stimulus, such as food or drink, which does not require learning to become pleasurable or desirable.