What is the price of Acme stock in year 2?
On February 6, Year 2, he exercises all his options when the price of Acme stock is $27. He sells the ISO shares three years later, when Acme stock is trading at $47 per share.
What is his long-term capital gain per share on Acme stock?
On February 6, Year 2, he exercises all his options when the price of Acme stock is $27. He sells the ISO shares three years later, when Acme stock is trading at $47 per share. What is his long-term capital gain per share? -His basis of the ISO shares (for regular tax) is $10. Thus, the difference between $47 and $10 is the capital gain.
When can Blake exercise his ISO stock options?
On January 15, Year 1, Blake, a Senior Vice President for Acme Corporation, is granted 20,000 ISOs at an exercise price of $10. On February 6, Year 2, he exercises all his options when the price of Acme stock is $27. When can Blake sell the ISO shares and avoid a disqualifying disposition? a. January 16, Year 4. b. January 16, Year 3.
How long do you have to hold stock for ISO?
To qualify as an ISO, the executive must hold the stock for either two years from the grant of the ISO or one year from the date of exercise of the ISO. c. ISOs can only be granted to an employee of the corporation issuing the ISOs.
How long is ISO exercise?
d. The exercise of the ISO is limited to a 10-year period.
Is Acme a qualified trust?
Acme Corporation has created a deferred compensation plan (Plan) for 50 key executives (participants), all of whom are highly compensated employees. Acme contributes each year on behalf of each participant to a trust, T. The trust is not and never has been a qualified trust under ยง401(a) and is not exempt from taxation under