Maren Received 10 NQOs (Each Option Gives Her the Right

question 115

Multiple Choice

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. What is the amount of Maren's bargain element?

• A)$0
• B)$700
• C)$900
• D)$1,500
• E)None of the choices are correct.

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Definitions:

Topmost Layers

Refers to the highest or uppermost layers or strata in a given structure or system, such as in geological formations or atmospheric levels.

Fossilized

The process by which organic material is converted into a fossil through the replacement of the original material with mineral substances.

Trace

A very small amount of something.