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