2. Question 41 fof 50) Save & Exit Subm 41. You did not receive full credit for

Question

2. Question 41 fof 50) Save & Exit Subm 41. You did not receive full credit for this question in a previous attemp Kajsa recelved 21 NoOs leach opsion gives her the right to purchase 30 shares of stock for $8 per share) trom her employer at the tme she started $9 per share. Now that the share price is $19 per share, she intends to exerise what is the amount of the deduction and tax savings her employer will receive tessume the employers magnat tar at. all of her options. If Kaijsa holds the shares for two years and sel's them when the market price is $27 Predious attempt MacBook Air 4

Explanation / Answer

SOLUTION

Deduction = $6,930

The deduction is equal to the bargain element i.e. income

= 21 options * 30 shares * ($19 market price - $8 exercise price)

= 21 options * 30 shares * $11

= $6,930

Tax = $6,930 * 30% = $2,079

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