On May 10,2014,Rafter Corporation Granted Peter an Option to Acquire

question 65

Multiple Choice

On May 10,2014,Rafter Corporation granted Peter an option to acquire 500 shares of the company's stock for $10 per share.The fair market price of the stock on the date of grant was $12.The fair market value of the option at the date of grant was $3.Peter exercises the option on July 1,2016,when the fair market value of the stock is $20.How much income must Peter report at the date of exercise?

• A)$-0-
• B)$1,200
• C)$1,800
• D)$3,600
• E)$5,400

Comprehend the role of indicator words in signaling premises and conclusions.

Analyze the logical structure of arguments through diagramming methods.

Understand the concept of multiple conclusions from a single premise.

Differentiate between arguments that can and cannot be diagrammed.

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Definitions:

Marginal Product

The increase in output that arises from an additional unit of input, holding all other inputs constant.

Power Cords

Electrical cables used to connect appliances and electronic devices to the main electricity supply in order to power them.

Fifth Worker

An example used in economics to illustrate the principle of diminishing returns, where the addition of a fifth worker may lead to a lesser increment in output than the fourth.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all others constant.