What Statement Is False with Respect to an Incentive Stock

question 34

Multiple Choice

What statement is false with respect to an incentive stock option (ISO) ?

• A)To qualify as an ISO, the option price must equal or exceed the fair market value of the stock at the time the option is granted.
• B)The spread is not subject to the alternative minimum tax.
• C)If the employee meets the holding period requirement, the employer does not obtain a business deduction.
• D)The spread is the excess of the FMV of the share at the date of exercise over the option price.
• E)None of these are false.

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Definitions:

Aggregate Function

A function in database management that performs a calculation on a set of values and returns a single value, such as sum, average, count, min, and max.

Statistic

A numerical measurement describing some characteristic of a sample or population, often used in the analysis of data.

Subtotal

A calculation that provides a summary of numerical data before the final total is computed, often used in spreadsheets and reports.

Medium Date

A date format displaying the day, abbreviated month, and year, e.g., "01 Jan 2023".