Maren Received 10 NQOs (Each Option Gives Her the Right

question 101

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. How much gain will Maren recognize on the sale of the shares and how much tax will she pay assuming her marginal tax rate is 37 percent?

• A) $0 gain and $0 tax.
• B) $500 gain and $100 tax.
• C) $500 gain and $185 tax.
• D) $1,200 gain and $240 tax.

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Definitions:

Patient's Nonverbal Response

The unspoken signals or reactions shown by a patient, such as facial expressions and body language, which can provide valuable information about their feelings and condition.

Smoking Cessation

The process of discontinuing tobacco smoking, which can significantly reduce the risks of developing smoking-related diseases.

Patient's Statement

Information provided by a patient concerning their health condition or history, used as a basis for diagnosis and treatment.

Nurse's Response

The actions or answers provided by a nurse following a patient's question, need, or medical situation.