Arnold exercised an incentive stock option in 2017, acquiring 1,300 shares of stock at an option price of $185 per share. The FMV of the stock at the date of exercise was $219 per share. In 2019, the rights became freely transferable and were not subject to a substantial risk of forfeiture. Arnold sells the shares in 2020 for $278 per share. Required: How do these transactions affect his AMTI in 2017, 2019, and 2020? (
Arnold exercised an incentive stock option in 2017, acquiring 1,300 shares of stock at an option price of $185 per share. The FMV of the stock at the date of exercise was $219 per share. In 2019, the rights became freely transferable and were not subject to a substantial risk of forfeiture. Arnold sells the shares in 2020 for $278 per share. Required: How do these transactions affect his AMTI in 2017, 2019, and 2020? (
Chapter12: Alternative Minimum Tax
Section: Chapter Questions
Problem 13DQ
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Arnold exercised an incentive stock option in 2017, acquiring 1,300 shares of stock at an option price of $185 per share. The FMV of the stock at the date of exercise was $219 per share. In 2019, the rights became freely transferable and were not subject to a substantial risk of forfeiture. Arnold sells the shares in 2020 for $278 per share.
Required:
How do these transactions affect his AMTI in 2017, 2019, and 2020? (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
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