Beverly Works for a Large Publicly Traded Company and Regularly

question 3

Multiple Choice

Beverly works for a large publicly traded company and regularly receives incentive stock options as bonuses.In the current year,Beverly exercises options to purchase 1,000 shares at $48 per share when the market value is $72 per share.What is Beverly's AMT adjustment from the exercise of the options?

• A)$48,000.
• B)$24,000.
• C)$72,000.
• D)None of these.

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Definitions:

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