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

question 62

Multiple Choice

Bad Brad received 20 NQOs (each option gives him the right to purchase 30 shares of stock for $10 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 intends to exercise 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?

• A) $6,000.
• B) $9,000.
• C) $15,000.
• D) $16,200.

Identify and describe the role of habitats and the factors affecting the distribution and size of populations.

Comprehend the significance and components of the greenhouse effect and climate-related processes.

Acknowledge the importance of techniques and tools in ecological research, such as GIS.

Understand the function and significance of soil types in supporting plant and animal life.

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified price.

Maturity

The point in time when a financial instrument or obligation, such as a bond or loan, becomes due and payment is required.

Premium

The amount paid for an insurance policy, or the extra cost above the nominal value of something such as a bond or stock.

Adjunct Liability

A liability that is attached to an asset in a supporting role, increasing the amount recorded as the asset rather than being recognized separately.