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

question 81

True/False

Elmer exercises an incentive stock option (ISO) in March for $6,000 (fair market value of the stock on the exercise date is $7,600).If Elmer sells the stock in November of the same tax year for $8,000, he reports a $1,600 AMT adjustment for the year.

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Definitions:

Nominal Data

This data type categorizes variables without a natural order or ranking among the categories.

Ordinal Data

A type of categorical data in which the order of values is significant, but the differences between values are not necessarily consistent.

Interval Data

A type of data measurement that not only keeps order but also has consistent differences between consecutive values, without a true zero point.

Ordinal Data

Data that represent order or ranking among categories but do not quantify the difference between categories, such as educational levels or satisfaction ratings.