question archive In 2021, Reya exercised an incentive stock option that had been granted to her in 2019 by her employer, Weather Corporation
In 2021, Reya exercised an incentive stock option that had been granted to her in 2019 by her employer, Weather Corporation
Subject:BusinessPrice: Bought3
In 2021, Reya exercised an incentive stock option that had been granted to her in 2019 by her employer, Weather Corporation. Reya acquired 100 shares of Weather stock for the option price of $190 per share. The rights in the stock become freely transferable and not subject to a substantial risk of forfeiture in 2021. The fair market value of the stock at the date of exercise was $250 per share. Reya sells the stock for $340 per share later in 2023.How would your answers in (a) change if Reya had sold the stock in 2021 rather than 2023?
Reya has a____________________ AMT adjustment is required in 2021. For regular tax purposes, Reya would recognize __________________ of ordinary/compensation income and a _______________ short-term capital gain.
