21

.docx

School

CUNY Borough of Manhattan Community College *

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Course

330

Subject

Finance

Date

Jan 9, 2024

Type

docx

Pages

1

Uploaded by fifoeliverta

Question 21 0 out of 1 points On January 1, 2023, Carly received 1,000 SARs at $18, the current trading price of Clippers, Inc., her employer. The SAR have a limit of $30/share. During 2023, the value of the shares rise and peak at S40/share on or about December 17, 2023, Carly exercises the SARs on January 1, 2025, when Clipper's stock is $20 per share, which of the following statements s true? Selected @ 2. In 2025 will have W-2 income equal to $2,000. Answer: Answers: 1 n 2025 Carly will have long-term capital gain of $2.000. 2. In 2025 will have W-2 income equal to $2,000. 3. In 2025 Carly will have W-2 income equal to $20,000. 4 n 2025 Carly will have an adjusted taxable basis of $18,000 in the Clippers, Inc. stock. @ 5. None of the above.
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