Minutes - National Association of Insurance Commissioners
b. Zero. No taxable income when the option is exercised (however, the bargain element is subject to the alternative minimum tax). c. Zero. No tax consequences for Netcom in the year of grant or exercise. d. Karen has an $88,000 capital gain [($50 selling price - $6 cost) x 2,000 shares]. Netcom receives no tax deduction and thus no tax benefit. 30. ................
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