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explain please!

7. Jay exercised an incentive stock option in the current year, paying $800 for stock worth $1,500 on the exercise date. He h
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b.$700.

since this is an iSO and the stock is not yer sold.

The amount of income to be offered for Alternative minimum tax purpose would be the spread between the price paid and the market price of the stock.

=>$1500 market price - $800 amount paid

=>$700.is the income for AMT.

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