Problem:
Antonio received 40 ISOs at the time he started working for Zorro Corporation six years ago (each option gives him the right to purchase 20 shares of Zorro stock for $3 per share). Zorro's share price was $3 per share at the time. Now that Zorro's share price is $50 per share, he intends to exercise all of his options and immediately sell all the shares he receives from the options exercise. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Required:
(1) What are Antonio's tax consequences on the grant date, the exercise date, and the date the shares are sold assuming his ordinary marginal rate is 30 percent and his long-term capital gains rate is 15 percent?
- Tax Paid
- Grant date $
- Exercise date & sale date $