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Mark for follow up Question 33 of 50 How is compensation from the exercise of no

ID: 2602265 • Letter: M

Question

Mark for follow up Question 33 of 50 How is compensation from the exercise of nonstatutory stock options reported on Form W-2 if co is NOT recognized on the date of the grant? The spread between the Grant price of the stock over the fair market value at the time of vesting is shown as a V" in box 12 OGrant price of the stock over the exercise price at the time of vesting is shown as a "V in box 12 Far market value of the stock over the exercise price at the time of exerse is shown as a in box 12. Grant price of the stock over the exercise price at the time of exercise is shown as a "V in box 12 Mark for follow up Question 34 of 50 Which statement is true? Both Form W-2 and Schedule D are used to report income from nonstatutory stock options Neither Form W-2 nor Schedule D are used to report income from nonstatutory stock options. Only Form W-2 is used to report income from nonstatultory stock options Only Schedule D is used to report income from nonstatutory stock Mark for follow up to

Explanation / Answer

33

Answer is 4

The spread between the grant price and the exercise price at the time of exercise is shown in box 12 with a code "V."

34

Answer is C

Announcement 2000-97, 2000-48 I.R.B. 557, advised employers that, beginning for 2001 Forms W-2, income from the exercise of nonstatutory stock options would also be required to be reported in box 12 and identified by a new code, Code V – Income from the exercise of nonstatutory stock options.

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