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

question 53

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

---

Definitions:

Policies

Guiding principles or courses of action adopted or proposed by a government, party, business, or individual.

1960s

A decade characterized by significant social, political, and cultural change worldwide, including civil rights movements, counterculture, and technological advancements.

Affordable Care Act

A comprehensive health care reform law enacted in 2010 aimed at expanding health insurance coverage and reducing health care costs.

Controversies

Public disagreements or debates marked by differing opinions and, often, strong emotional responses.