Maren Received 10 NQOs (Each Option Gives Her the Right

question 55

Multiple Choice

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. What is the amount of Maren's bargain element?

• A) $0.
• B) $700.
• C) $900.
• D) $1,500.
• E) None of these.

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Definitions:

Jurors' Reactions

Refers to the responses, emotions, or perceptions of jury members during a trial or upon hearing evidence.

Testify Under Oath

The act of giving a formal statement or evidence in a court of law, swearing or affirming to tell the truth.

Affidavit

A written statement of facts, confirmed by the oath or affirmation of the party making it and sworn before a person having the authority to administer the oath or affirmation.

Witness

A person who is asked to testify under oath at a trial.