_____ 12. 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 who receives a nonqualified stock option only recognizes income when the option is exercised, not when it is received. The amount recognized as income is the difference between the fair market value at exercise and the strike price.

_____ 12 an Employee Who Receives a Nonqualified Stock Option Recognizes