Business, 16.12.2019 21:31 gimmethemanswers

Yost received 300 noos (each option gives yost the right to purchase 10 shares of cutter corporation stockfor $15 pershare) at the time he started working for cutter corporation three years ago. cutter‘s stock price was $15 per share. yost exercises all of his options when the share price is $26 per share. two years after acquiring the shares, he sold them at$47 per share. a) what are yost‘s taxes due on the grant date, exercise date, and sale date, assuming his ordinary marginal rate is 35percent and his long-term capital gains rate is 15 percent? b) what are cutter corporation's tax consequences (amount of deduction and tax savings from deduction) on the grantdate, the exercise date, and the date yost sells the shares assuming its marginal tax rate is 25 percent? c) assume that yost is "cash poor" and needs to engage in a same-day sale in order to buy his shares. due to his belief thatthe stock price is going to increase signiﬁcantly, he wants to maintain as many shares as possible. how many shares musthe sell in order to cover his purchase price and taxes payable on the exercise? d) assume that yost's options were exercisable at $20 and expired after five years. if the stock only reached 518 dollarsduring its high point during the five-year period, what are yost’s tax consequences on the grant date. the exercise date. and the date the shares are sold. assuming his ordinary marginal rate is 35 percent and his long-term capital gains rate is15 percent?

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Yost received 300 noos (each option gives yost the right to purchase 10 shares of cutter corporation...

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