Antonio received 40 ISOs (ea
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 12-31 (LO 12-2) (Static)
[The following information applies to the questions displayed below.]
Antonio received 40 ISOs (each option gives him the right to purchase 20 shares of Zorro stock for $3 per share) at the
time he started working for Zorro Corporation six years ago. Zorro's stock price was $3 per share at the time. Now that
Zorro's stock price is $50 per share, Antonio intends to exercise all of his options and immediately sell all the shares he
receives from the options exercise.
Note: Enter all amounts as positive values. Leave no answers blank. Enter zero if applicable.
Problem 12-31 Part b (Static)
b. What are Zorro's tax consequences on the grant date, the exercise date, and the date Antonio sells the shares?
X Answer is complete but not entirely correct.
Grant date
Exercise date and sale date
Tax Benefit
$
$
0
0X
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Transcribed Image Text:!
Required information
Problem 12-31 (LO 12-2) (Static)
[The following information applies to the questions displayed below.]
Antonio received 40 ISOs (each option gives him the right to purchase 20 shares of Zorro stock for $3 per share) at the
time he started working for Zorro Corporation six years ago. Zorro's stock price was $3 per share at the time. Now that
Zorro's stock price is $50 per share, Antonio intends to exercise all of his options and immediately sell all the shares he
receives from the options exercise.
Note: Enter all amounts as positive values. Leave no answers blank. Enter zero if applicable.
Problem 12-31 Part b (Static)
b. What are Zorro's tax consequences on the grant date, the exercise date, and the date Antonio sells the shares?
X Answer is complete but not entirely correct.
Grant date
Exercise date and sale date
Tax Benefit
$
$
0
0X
Return to que
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