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

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Definitions:

Dual-Career Families

Families in which both partners pursue their own careers, often facing challenges balancing professional and family life.

Workplace Stress

The response employees have when presented with work demands and pressures that are not matched to their knowledge and abilities, challenging their ability to cope.

Human Relations

The study and management of how individuals and groups interact within an organization.

Sustainable-Wage Jobs

Employment positions that offer wages sufficient to support a decent standard of living for individuals and their families.