Elmer Exercises an Incentive Stock Option (ISO)in 2014 for $6,000

question 96

True/False

Elmer exercises an incentive stock option (ISO)in 2014 for $6,000 (fair market value of the stock on the exercise date is $7,600).If Elmer sells the stock later in 2014 for $8,000,the AMT positive adjustment is $1,600 and the AMT negative adjustment is $2,000.

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Definitions:

Persistence

The quality of continuing firmly or obstinately in a course of action in spite of difficulty or opposition.

Direction

Guidance or supervision provided to achieve a goal or follow a particular course of action; often implies leadership or the process of setting goals.

Intensity

The degree of strength, force, or energy with which an action is executed or a characteristic is manifested.

Cross-Cultural Values

Beliefs or priorities that vary among different cultures, affecting behavior, practices, and perceptions.