In 2011, Mr

question 38

Multiple Choice

In 2011, Mr. Delgado exercised an option to purchase 1,000 shares of his employer's stock for $29 per share when the market price was $65 per share. This year, Mr. Delgado sold the stock for $80 per share. Which of the following statements is false?

• A) If the option was an ISO, Mr. Delgado recognized a $51,000 gain on sale.
• B) If the option was nonqualified, Mr. Delgado recognized a $15,000 gain on sale.
• C) If the option was an ISO, Mr. Delgado has a $36,000 AMT preference item this year.
• D) None of these choices are false.

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Definitions:

Negotiations Impasse

A situation where discussions or bargaining have reached a deadlock, with no apparent solution in sight.

Superordinate Goals

Objectives that require the cooperation of two or more parties and supersede individual or conflicting objectives.

Role Reversal

Role reversal is a technique or exercise where individuals switch roles to understand and empathize with others’ perspectives and experiences.

Personal Analogies

A method of problem-solving or creativity that involves drawing parallels between one's own experiences and another situation.