Bad Brad Received 20 NQOs (Each Option Gives Him the Right

question 85

Multiple Choice

Bad Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 per share) from his employer.At the time he started working the stock price was $11 per share.Now that the share price is $25 per share, he exercises all of the options.Two years later Bad Brad sells the stock for $27 per share.What is Bad Brad's basis in his stock for purposes of calculating the gain or loss?

• A)$6,000.
• B)$9,000.
• C)$15,000.
• D)$16,200.

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Definitions:

Myelin Sheaths

Insulating layers of fatty material that surround the axons of many neurons, enhancing the speed at which electrical impulses are conducted.

Synaptic Connections

The points at which neurons (nerve cells) connect and communicate with each other through neurotransmitters.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them toward the cell body.

Axons

Long, slender projections of nerve cells (neurons) that conduct electrical impulses away from the neuron's cell body.