Maren Received 10 NQOs (Each Option Gives Her the Right

question 55

Multiple Choice

Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. What is the amount of Maren's bargain element?

• A) $0.
• B) $700.
• C) $900.
• D) $1,500.
• E) None of these.

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Definitions:

Precedent

A legal principle or rule established in a previous court decision that is either binding or persuasive for a court when deciding subsequent cases with similar issues or facts.

Critical-Thinking Skills

The ability to understand the structure and worth of an argument by evaluating the facts, issue, reasons, and conclusion of the argument.

Absolute Skills

A term not typically used in a standard context to describe specific competencies; therefore, its meaning might vary across different fields. Generally, it may refer to fundamental or essential skills possessed without conditions. However, if not recognized widely, consider it as NO.

Constitutions

The fundamental principles or established precedents by which a state or other organization is governed, typically a written document outlining the powers of government and the rights of the governed.