On October 2,2013,Miriam Sells 1,000 Shares of Stock at $20

question 18

Short Answer

On October 2,2013,Miriam sells 1,000 shares of stock at $20 per share.Miriam acquired the stock on November 12,2012,when she exercised her option to purchase the shares through her company's incentive stock option plan.The exercise price was $11 per share and the fair market value of the stock at the date of exercise was $14 per share.For 2013,Miriam must report
$\begin{array}{ll}&\text { Ordinary } & \text { Capital } \\&\text { Income }&\text { Gain } \\a.&\$3,000&\$6,000\\\text { b. } &\$ 6,000 & \$ 3,000 \\\text { c. }& \$ 9,000 & \$-000 \\\text { d. }& \$-0- & \$ 9,000\end{array}$

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Definitions:

Nervous System

Organ system of humans that includes the brain, spinal cord, sense organs (eyes, ears, etc.), and associated nerves. Receives, integrates, and stores sensory input; coordinates activity of other organ systems.

Endocrine System

Organ system involved in the coordination of body activities; uses hormones as chemical signals secreted into the bloodstream.

Altruism

Social interaction that has the potential to decrease the lifetime reproductive success of the member exhibiting the behavior.

Dominance Hierarchy

A social structure within a group of animals where individuals are ranked according to their level of dominance or power.