On June 1,2016,Sutton Corporation Grants Anne an Option Under Its

question 36

Multiple Choice

On June 1,2016,Sutton Corporation grants Anne an option under its nonqualified stock option plan to acquire 300 shares of the company's stock for $12 per share.The fair market price of the stock on the date of grant is $18.The fair market value of the option is $4.How much must Anne report as income at the date of grant?

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

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Definitions:

Leadership Effectiveness

Leadership effectiveness refers to the extent to which a leader successfully achieves desired outcomes through the direction, motivation, and inspiration of followers.

Leader Behaviours

Actions displayed by someone in a leadership position that influence the motivation, performance, or satisfaction of followers.

Big Five Dimensions

A model outlining five major personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Extraversion

A personality trait characterized by outgoing, energetic behavior, and enjoying being around other people.