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Problem 1: Maren received 10 NQOs (each option gives her the right to purchase 15 shares of stock for $7 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. What is the amount of Maren's bargain element?
Option 1: $0. Option 2: $1,200. Option 3: $1,350. Option 4: $2,250. Option 5: None of the choices are correct.
Financial Statement Analysis and Preparation
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