In 2008, Mr Delgado Exercised an Option to Purchase 1,000

question 50

Multiple Choice

In 2008, Mr Delgado exercised an option to purchase 1,000 shares of his employer's stock for $29 per share when the market price was $65 per share. This year, Mr Delgado sold the stock for $80 per share. Which of the following statements is false?

• A) If the option was an ISO, Mr. Delgado recognized a $51,000 gain on sale.
• B) If the option was nonqualified, Mr. Delgado recognized a $15,000 gain on sale.
• C) If the option was an ISO, Mr. Delgado has a $36,000 AMT preference item this year.
• D) None of the above is false.

---

Definitions:

Easiest

The term easiest denotes the level of least difficulty, referring to tasks, solutions, or paths requiring the minimal effort or complication.

Upcoming Section

A part or segment of a document or presentation that is forthcoming, not yet reached in the sequence.

Presentation Outline

A structured plan or summary showing the main points, structure, or layout of a presentation to be delivered.

Visual Aids

Materials or devices used to enhance the comprehension of information, including charts, diagrams, videos, and slides.