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What is the amount of the tax preference item

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Reference no: EM132673233

Problem - Zaire Corporation granted an ISO for 250 shares of its stock to Bruno on July 20, 2018, for service rendered. The option price was $130 and the fair market value was $130 on the date of the grant. Bruno exercised the option on September 1, 2018, when the fair market value of the stock was $225 per share. He sells the stock on November 30, 2019, for $350 per share.

Required -

a. What is the amount of the tax preference item that Bruno has on the exercise date?

b. What is Bruno's long-term capital gain on the sale of the stock in 2019?

Reference no: EM132673233

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