Mr. Hot Dog, in charge of the Oscar Mayer division of Kraft…
Mr. Hot Dog, in charge of the Oscar Mayer division of Kraft Foods, received KHC incentive stock options (ISOs) two years ago with an exercise price of $30 a share, the value of the stock at the date of the grant. Mr. Hot Dog exercised these options when KHC hit a 52 week high of $44/share on May 21st of this year. KHC’s performance has since reverted and the stock is now trading at $36 per share. Mr. Hot Dog is considering diversifying his risk against any future losses and wants to buy NATH, Nathan’s Famous, as this stock has outperformed. Which of the following are true regarding Mr. Hot Dog’s stock options? If he sells his KHC options today, he will have a short term capital gain of $6 a share. If he sells his KHC options 9 months from now at its current trading price, he will have long term capital gains of $6 a share. If he sells his KHC options 9 months from now at its current trading price, he will have a negative AMT adjustment of $14 a share next year. If he sells his KHC options today, Kraft Foods Inc will not have a deductible expense related to the ISOs.
Read DetailsThe following GOAL does not follow the criteria for writing…
The following GOAL does not follow the criteria for writing GOALS correctly. Rewrite the GOAL to meet the criteria for writing goals. Information may be added as needed to reach criteria. Pt will increase strength of hip extensors from 2/5 to 4/5.
Read DetailsOne of the disadvantages of an ESOP is that the stock is in…
One of the disadvantages of an ESOP is that the stock is in an undiversified investment portfolio. Which of the following statements is correct about an ESOP that defines normal retirement age to be 66?1. An employee may require that 25 percent of the account balance be diversified so long as he/she is age 65 and completed 10 years of service.2. An employee may require that 50 percent of the account balance be diversified during their sixth & final year of their qualified election period that begins when the employee is deemed a qualified participant.
Read DetailsHenry, who is 48 years old, works for GN-BA!, Inc., with a s…
Henry, who is 48 years old, works for GN-BA!, Inc., with a salary of $330,000, a car allowance, and a very nice expense account. GN-BA! is a Fortune 750 company that sponsors a defined benefit plan that pays two percent times years of participation times the average of the three final years of compensation. In addition, GN-BA! sponsors a 401(k) / profit-sharing plan and contributes 18% of employees salary to the profit-sharing plan. There is no additional match. If the ADP of the NHCEs is 3%, what is the maximum that Henry can defer this year (2024)?
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