On May 1,2013,Peyton Is Granted the Right to Acquire 500

question 19

Essay

On May 1,2013,Peyton is granted the right to acquire 500 shares of the Simon Corporation for $18 per share.The option qualifies under the company's incentive stock option plan.The current fair market value of the stock is $10.On September 18,2014 when the stock is selling for $20 per share,Peyton exercises his option to purchase the stock.Peyton sells the shares on November 15,2015,for $30 per share.Determine the tax consequences for Peyton and the Simon Corporation on the
a.Date of grant
b.Date of exercise
c.Date of sale

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Definitions:

Democratic Ideals

Principles that support the belief in equality, freedom, and justice within a societal system where government is carried out by the people, either directly or through elected representatives.

Abraham Lincoln Brigade

American volunteers who fought for the Republican side against Franco's Nationalists in the Spanish Civil War, notable for comprising anti-fascist activists.

Fascism

A political ideology that advocates for authoritarian ultra-nationalism, centralized power, and dictatorial leadership, often combined with the suppression of opposition.

Ethiopia

A country in the Horn of Africa, known for its ancient civilization and diverse cultural heritage.