Statement 1: In the case of stock options, the amount of compensation shall be the FMV of the stock options at the time of the exercise of such option.
Statement 1: In the case of stock options, the amount of compensation shall be the FMV of the stock options at the time of the exercise of such option.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 6Q
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- Statement 1: In the case of stock options, the amount of compensation shall be the FMV of the stock options at the time of the exercise of such option.
Statement 2: Upon the exercise of the stock option, additional income shall be subject to regular tax if exercised by a managerial employee.
Which statement/s is/are correct?
a.Statement 2
b.Both statements
c.Statement 1
d. neither statement
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