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:

Classical Conditioning

A learning process that creates associations between a naturally occurring stimulus and a previously neutral stimulus.

Acquisition

In learning theory, the process of gaining new information and incorporating it into one's knowledge base.

Classical Conditioning

A learning process in which an association is made between a naturally occurring stimulus and a previously neutral stimulus.

Conditioned Stimulus

An initially neutral stimulus that becomes associated with an unconditioned stimulus, leading to a conditioned response in classical conditioning.