Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

question 99

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. If Caroline sells the stock on September 5, 2016 for $300 per share, she must recognize

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Definitions:

Wiggling

Moving with short, quick movements from side to side or up and down, often seen in small creatures or as a way to adjust position.

Parasitic

Describes organisms that live on or in a host organism and cause harm to the host.

Scavenging

The act of consuming dead or decaying organic material, a behavior observed in some animals, bacteria, and fungi.