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Question: complete the problems listed below relating to biosci corp for...

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Complete the problems listed below relating to BIO-SCI Corp for its employee, Jone Lee. For each event of each problem, indicate if this is a taxable event, amount of taxable income and character of the income. Also indicate the starting date for the holding period of the underlying stock. (Note: Ignore AMT for all problems)

2. BIO-SCI issued Non-Qualifed Stock Options (NQ) to Jone as follows:

a. July 1, 2013 - Granted 200,000 NQ’s (Exercise price = $10/share & FMV = $10/share). 


Taxable Event: No

b. June 15, 2014 – Exercised her 50,000 NQ’s (FMV of stock = $16/share) 


Taxable Event: Yes, $16-$10= $

c. October 20, 2015 – Sold 10,000 shares of stock (Proceeds = 
$21/share) 


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