In 2009, Z Received Non-Qualified Stock Options as Part of Her

question 15

Multiple Choice

In 2009, Z received non-qualified stock options as part of her compensation from U Corporation.When granted, the options had no ascertainable value.In 2012, Z exercised the options and purchased 1,000 shares of U stock, market value $100 per share, for the option price of $70 per share.Accordingly,

• A)In 2012, Z must recognize $100,000 in ordinary income.
• B)In 2012, Z must recognize $70,000 in ordinary income.
• C)In 2012, Z must recognize $30,000 in ordinary income.
• D)None of the above is correct.

---

Definitions:

Text Box

A graphical control element within software applications where users can input text data.

Text Box Control

An element in graphical user interfaces that lets users input or edit text.

Detail Section

A specific area in reporting or forms design software, used to display the main body of information or individual records in detail.

Split Form

In database software, a form that combines a datasheet and a form view, allowing users to see form details and datasheet listings simultaneously.