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.

---

Definitions:

Endergonic Reaction

A chemical reaction that requires energy to proceed, typically absorbing energy from its surroundings.

Exergonic Redox

Chemical reactions where energy is released, involving the transfer of electrons from one substance to another.

Electron Transport Chain

A series of protein complexes and small molecules that transfer electrons across a membrane within mitochondria to produce ATP.

Aerobic Respiration

The process of producing cellular energy in the presence of oxygen, involving the breakdown of food substances and release of energy.