R1 (4) - EMPLOYEE STOCK OPTIONS

Question 1

I. EMPLOYEE STOCK OPTIONS - Nonqualified Options Definition of Readily Ascertainable Value

Answer 1

Taxable when granted

Question 2

I. EMPLOYEE STOCK OPTIONS - Nonqualified Options Readily Ascertainable Value

Answer 2

Taxable at grant

Question 3

I. EMPLOYEE STOCK OPTIONS - Nonqualified Options Without Readily Ascertainable Value

Answer 3

Taxed at exercise

Question 4

I. EMPLOYEE STOCK OPTIONS - Nonqualified Options Employer Taxation

Answer 4

Deduct in same year that employee reports income

Question 5

I. EMPLOYEE STOCK OPTIONS - Nonqualified Options Example

Answer 5

R1.4.1

Question 6

I. EMPLOYEE STOCK OPTIONS - Qualified Options Incentive Stock Options

Answer 6

1- An ISO is usually granted to a key employee and is a right to purchase the stock at a discount.

Question 7

I. EMPLOYEE STOCK OPTIONS - Qualified Options Employee Taxation

Answer 7

Not Taxable as compensation capital gain/loss sold

Question 8

I. EMPLOYEE STOCK OPTIONS - Qualified Options Employer Taxation

Answer 8

An ESPP may grant options to employee to purchased stock in the corporation .

Question 9

I. EMPLOYEE STOCK OPTIONS - Qualified Options Example

Answer 9

R1.4.2