Suzy Service Company (SSC) grants an ISO to Bill on March 31, 2016, for 200 shares with an exercise price of $3, the FMV of the stock of March 31, 2016. Mary Jo exercises the ISO on April 15, 2017, when the stock is worth $5 a share. She sold the stock on September 12, 2016, for $6 a share. What are the tax consequences to Mary Jo and SSC on the following dates? (a) March 31, 2016 (Grant) (b) April 15, 2017 (Exercise) (c) September 12, 2017 (Sale of stock)

Suzy Service Company (SSC) grants an ISO to Bill on March 31, 2016, for 200 shares with an exercise price of $3, the FMV of the stock of March 31, 2016. Mary Jo exercises the ISO on April 15, 2017, when the stock is worth $5 a share. She sold the stock on September 12, 2016, for $6 a share. What are the tax consequences to Mary Jo and SSC on the following dates? (a) March 31, 2016 (Grant) (b) April 15, 2017 (Exercise) (c) September 12, 2017 (Sale of stock)

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 25CE

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