_____ 13.An employee who receives a nonqualified stock option recognizes income when the option is received and when it is exercised regardless of the strike price.

Question

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An employee recognizes income from a nonqualified stock option only when the option is exercised, not when it is received. The income is the difference between the market price and the strike price at the time of exercise.

_____ 13An Employee Who Receives a Nonqualified Stock Option Recognizes Income