Bad Brad Received 20 NQOs (Each Option Gives Him the Right

question 34

Multiple Choice

Bad Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $12 per share) from his employer. At the time he started working, the stock price was $11 per share. Now that the share price is $25 per share, he exercises all of the options. Two years later Bad Brad sells the stock for $27 per share. What is Bad Brad's basis in his stock for purposes of calculating the gain or loss at the time of the sale?

• A) $7,200.
• B) $7,800.
• C) $15,000.
• D) $16,200.

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Definitions:

HR Gap

The difference between the current capabilities of an organization's human resources and the skills and competencies needed to achieve strategic objectives.

Human Capital

Human Capital represents the skills, knowledge, and experience possessed by individuals, considered in terms of their value to an organization.

Skills Gap

A situation in which the supply of a particular form of human capital available to the firm is inadequate to address the demand.

North America

A continent entirely within the Northern Hemisphere and almost all within the Western Hemisphere; it is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the east, the Pacific Ocean to the south and west, and South America and the Caribbean Sea to the southeast.