Kaijsa Received 20 NQOs (Each Option Gives Her the Right

question 65

Essay

Kaijsa received 20 NQOs (each option gives her the right to purchase 30 shares of stock for $8 per share)from her employer at the time she started working when the stock price was $9 per share.Now that the share price is $18 per share,she intends to exercise all of her options.If Kaijsa holds the shares for two years and sells them when the market price is $25,what is the amount of the deduction and tax savings her employer will receive (assume the employer's marginal tax rate is 30 percent)?

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Definitions:

Proposition

A pronouncement or avowal that reveals a conviction or evaluation, with the possibility of being right or wrong.

S are P

A logical structure indicating a relationship where "S" represents the subject and "P" the predicate, asserting that the subject belongs to the predicate category.

Venn Diagram

A diagrammatic representation used in set theory and logic to depict the relationships between sets through overlapping circles or shapes.

Universal Proposition

A categorical proposition that makes an assertion about all members of the class designated by its subject term (A and E).