Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

question 63

Multiple Choice

Martin Corporation granted a nonqualified stock option to employee Caroline on January 1,2011. 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 1,2014 when the stock's FMV was $250. Caroline sells the stock on September 5,2015 for $300 per share. Martin Corporation will be allowed a deduction of

• A)$150,000 in 2011.
• B)$100,000 in 2014.
• C)$50,000 in 2015.
• D)$100,000 in 2014 and $50,000 in 2015.

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Definitions:

Herb Use

The practice of using plants for medicinal or therapeutic purposes, including improving health and preventing illness.

Interaction

The reciprocal action or influence between entities, leading to a response or the creation of new dynamics.

Standardization

The process of making something conform to a standard in order to ensure consistency and uniformity across different units.

CAM

Complementary and Alternative Medicine, which refers to a broad range of healthcare practices that are not part of a country's own tradition or conventional medicine.