Answered

Dion was granted 1.000 nannualified stock entiens in 2018. The exercise price was $30 an option and there was a fi-year vesting winden. In 21023, Dillen exercises the op fair value was 545 in 2026 Den sold the stock for $50 a share What is the amount of taxable inconie reported in 20237 520.000 $15,000 $30.000 $45.000



Answer :

To determine the taxable income reported in 2023, we need to calculate the difference between the fair market value of the stock at the time of exercise and the exercise price.

Fair market value at exercise: $45 per share (since it's $50 per share in 2026, and Dillen exercised the options in 2023)
Exercise price: $30 per share

Therefore, the taxable income per share is $45 - $30 = $15.

Since Dillen exercised 1,000 options, the total taxable income reported in 2023 is $15 * 1,000 = $15,000

Other Questions