Which of the Following Describes the Correct Treatment of the Exercise

question 27

Multiple Choice

Which of the following describes the correct treatment of the exercise of nonqualified stock options (NQOs) ?

• A)Financial-no expense; tax-no deduction.
• B)Financial-no expense; tax-deduct bargain element at exercise.
• C)Financial-expense value over vesting period; tax-no deduction.
• D)Financial-expense value over vesting period; tax-deduct bargain element at exercise.

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Definitions:

Wechsler Adult Intelligence Scale

A widely used test designed to measure the intelligence of adults and older adolescents, consisting of various verbal and performance subtests.

IQ Tests

Standardized assessments designed to measure human intelligence and cognitive abilities.

Incentive

Something that motivates or encourages someone to take a particular action.

Motive

A psychological feature that arouses an organism to action toward a desired goal; the reason for the action.