On October 23,2013,McIntyre Sells 700 Shares of Stock at $26

question 63

Short Answer

On October 23,2013,McIntyre sells 700 shares of stock at $26 per share.McIntyre acquired the stock on June 1,2012,when he exercised his option to purchase the shares through his company's incentive stock option plan.The exercise price was $12 per share and the fair market value of the stock at the date of exercise was $16 per share.For 2013,McIntyre must report
$\begin{array}{ll}\text { Ordinary }&\text { Capital }\\\underline{\text { Income }}& \underline{\text { Gain }}\\a.{\$-0-} &{\$ 7,000} \\b.\$-0- & \$ 9,800 \\c.\$ 9,800 & \$-0- \\d.\$ 2,800 & \$ 7,000\end{array}$

Understand the doctrine of respondeat superior and its application to employer liability.

Distinguish between disclosed, partially disclosed, and undisclosed principals and the legal implications of each status.

Comprehend the effects of termination of agency on the authority and liability of the agent.

Recognize the conditions under which a principal can ratify unauthorized acts of an agent.

---

Definitions:

Tension

A psychological or emotional state resulting from being in a conflict or experiencing stress.

Coordinated Unit

A group of individuals working together in a structured and harmonized manner to achieve common goals or tasks.

Mature Team

A team that has developed a high level of coherence, efficiency, and effectiveness through shared experiences and ongoing collaboration.

FIRO-B Theory

A psychological theory that explores interpersonal relations, focusing on three fundamental needs: inclusion, control, and affection.