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Q, a corporate executive, exercised an incentive stock option ("ISO") granted by Q's employer to purchase 1,000 shares of the corporation's stock at the option price of $1 per share (i.e., the exercise price is $1 per share). The stock is freely transferable. At the time the option was exercised, the stock was selling for $11 per share. What is the AMT adjustment that results from Q exercising the ISO (assume that Q will NOT dispose of any of the stock during the year)?

a. $0

b. $10

c. $10,000

d. $11,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M957314

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