Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

question 11

Multiple Choice

Martin Corporation granted a nonqualified stock option to employee Caroline on January 1,2013.The option price was $150,and the FMV of the Martin stock was also $150 on the grant date.The option allowed Caroline to purchase 1,000 shares of Martin stock.The option itself does not have a readily ascertainable FMV.Caroline exercised the option on August 1,2017,when the stock's FMV was $250.If Caroline sells the stock on September 5,2018,for $300 per share,she must recognize

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Definitions:

Lack Of Coordination

The absence of harmonious operation or collaboration between groups or systems, often leading to inefficiency or disorder.

Hydrogen Ions

Positively charged ions (protons) of hydrogen that play a crucial role in chemical reactions and pH balance in biological systems.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with values ranging from 0 (acid) to 14 (basic).

Bromecresol Purple

A pH indicator dye that changes color from yellow to purple over a pH range of approximately 5.2 to 6.8, commonly used in laboratory settings.