Reference no: EM132729151

Problem 1: ISOs are a common benefit for executives. Which of the following statements is NOT correct regarding ISOs?

Option 1: ISOs can only be granted to an employee of the corporation issuing the ISOs.

Option 2: The exercise of the ISO is limited to a 10-year period.

Option 3: To the extent that the aggregate fair market value of stock with respect to which ISOs are exercisable for the 1st time by any individual during any calendar year exceeds $100,000, such options shall be treated as NQSOs.

Option 4: To qualify as an ISO, the executive must hold the stock for either two years from the grant of the ISO or one year from the date of exercise of the ISO.

Problem 2: Hiral is 62 years old, and his normal Social Security retirement age is 67. He plans on waiting to collect his benefits until he is 70 years old. If he waits until age 70, and his normal age retirement PIA is $2,000, how much can Hiral expect to receive as a monthly retirement benefit at age 70 (without regard to any COLA)?

Option 1: $1,420.

Option 2: $2,000.

Option 3: $2,480.

Option 4: $2,519.