Under a Nonqualified Stock Option (NQSO)plan Which Is Granted to Damon

question 21

Multiple Choice

Under a nonqualified stock option (NQSO) plan which is granted to Damon on March 15,2012,he may purchase 200 shares of stock from his employer at $15 per share.At that date,the option does not have a readily ascertainable fair market value.Eight months later on the date of exercise the fair market value of the stock is $20.On December 1,2014,Damon sells 100 shares for $24 each.Which of the following would be the result of these transactions on the date of exercise and the date of sale?

• A)Ordinary income of $1,000 and a long-term capital gain of $400.
• B)Ordinary income of $1,200 and a long-term capital gain of $300.
• C)Ordinary income of $2,400 and a long-term capital gain of $0.
• D)Ordinary income of $1,000 and a short-term capital gain of $400.
• E)None of these.

Familiarity with the concepts of genetic diversity preservation and the role of corridors in habitat connectivity.

Knowledge of environmental indicators and the significance of certain species as bioindicators.

Understanding the relationship between poverty, human activities, and the depletion of wild species.

Understand the concept of species endangerment and recovery practices in marine environments.

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Definitions:

Food

Nutritive material consumed by living organisms to sustain life and growth.

Malthusian Trap

A theory suggesting that population growth tends to outpace agricultural production, leading to periodic starvation, poverty, and population decline.

Poor

Describes individuals or groups who lack financial resources or essentials for a minimum standard of living.

Food

Any nutritious substance that people or animals eat or drink or that plants absorb in order to maintain life and growth.