Mr. Chan's employer gave him a share option in March last year to buy 10,000 shares in X Ltd for $5 each when themarket price of the shares was $10. Mr. Chan exercised the share option in March this year when the market price ofthe shares was $15 each. He sold all the shares yesterday for $20 each. What is the share option gain to be included inthe assessable income? Question 41 Answer a. $50,000 b. $150,000 c. $200, 000 d. $100, 000

Basic Information Sale Consideration = $200,000Cost of Acquisition = $100,000

Answered: Mr. Chan's employer gave him a share…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter5: The Cost Of Money (interest Rates)

Section: Chapter Questions

Problem 2PROB

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Problem 4. Mr. X is an investor in ABC Corporation. In 2020, he has 1,000 share holdings acquired at P120 per share classified as capital asset. Mr. X uses FIFO in costing his investment holdings. Required: a.) What would be the net capital gain in March? b.) How much is the nondeductible loss in May? c.) Supposing that all the remaining shares were liquidated in December 2021 at 130 per share, what would be the capital gain(loss) to be recognized.
Problem 4. Mr. X is an investor in ABC Corporation. In 2020, he has 1,000 shareholdings acquired at P120 per share classified as a capital asset. Mr. X uses FIFO in costing his investment holdings b. How much is the nondeductible loss in May? c. Supposing that all the remaining shares were liquidated in December 2021 at 130 per share, what would be the capital gain(loss) to be recognized.
Problem 4. Mr. X is an investor in ABC Corporation. In 2020, he has 1,000 share holdings acquired at P120 per share classified as capital asset. Mr. X uses FIFO in costing his investment holdings. b. How much is the nondeductible loss in May? c. Supposing that all the remaining shares were liquidated in December 2021 at 130 per share, what would be the capital gain(loss) to be recognized.
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You purchased a share of stock in The Hephaestus Company last year at $40, which paid you a $2 dividend during the year. What is your holding period return if: a. You sell the stock for $44. b. You sell the stock for $50. c. You sell the stock for $35
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ou purchased 850 shares of Sea Inc. common stock one year ago for $47 per share. You received a dividend of $1.35 per share today and decide to take your profits by selling at $52.50 per share. What is your Olding period rate of return? A. 12.72% B. 14.57% OC. 11.70% O D.8.58% O E. None of the above.
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