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Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

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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 1,2013 when the stock's FMV was $250.Caroline sells the stock on September 5,2014 for $300 per share.Martin Corporation will be allowed a deduction of


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Explain

To make something clear or easy to understand by describing or giving information about it.

Justify

To provide valid reasons or evidence to support an argument or action.

Claim

A statement made about something, usually without providing evidence or proof, often requiring verification.

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The process of making minor changes to improve or correct a situation or mechanism.

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