Question 35 of 75 is compensation trom the exercise of nonstatutory stock option

Question

Question 35 of 75 is compensation trom the exercise of nonstatutory stock options reported on Form W.2 1t compensation is NOT recognized on the date of the grant? The spread between the of the stock over the tair market value at the time of westing is shown as a "V in box 12 O Grant price of the stock over the exercse price at the time of vesting is shown as a "V in box 12 Fair matket value of the stock over the exercise price at the time of everoise is shown as a V in bax 12 Grant price of the stock over the exercese price at the time of exercise is shown as a "V in box 12 l Mark for tollow up

Explanation / Answer

4) Grant price of the stock over the exercise price at the time of exercise is shown as a "V" in box 12. The spread between the grant price and the exercise price at the time of exercise is shown in box 12 with a code "V." The compensation is recongnized and it is the addition to the wages on Form W-2 in the year when the employee exercise the options. The stock options are granted it is not taxable but when actually exercise those options later sell the stock that you purchased that will have taxable transactions.

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