9. On March 1, 2018, Unicorp granted 1,000 Non-qualified StockOptions to Haley (an employee)....

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Accounting

9. On March 1, 2018, Unicorp granted 1,000 Non-qualified StockOptions to Haley (an employee). The exercise price on the shareswas $2 per share. On December 31, 2018, Jim exercised all of herstock options when the market price per share was $10. What is thebasis of her stock, and what amount should be included on her FormW-2 as wage income in 2018?

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For tax purposes an employee stock options are classified as either Incentive stock options ISOs or NonQualified stock options NSOs Incentive stock options ISOs Also known as Qualified stock options An Employee or any other individual who possess these type of stock options has a tax benefit that upon exercising the option to purchase the stock at the exercise price or grant price employee does not has to pay the ordinary income tax on the income which See Answer

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In: Accounting9. On March 1, 2018, Unicorp granted 1,000 Non-qualified StockOptions to Haley (an employee). The...9. On March 1, 2018, Unicorp granted 1,000 Non-qualified StockOptions to Haley (an employee). The exercise price on the shareswas $2 per share. On December 31, 2018, Jim exercised all of herstock options when the market price per share was $10. What is thebasis of her stock, and what amount should be included on her FormW-2 as wage income in 2018?