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On May 10,2015,Rafter Corporation Granted Peter an Option to Acquire

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On May 10,2015,Rafter Corporation granted Peter an option to acquire 500 shares of the company's stock for $10 per share.The fair market price of the stock on the date of grant was $12.The fair market value of the option at the date of grant was $3.Peter exercises the option on July 1,2017,when the fair market value of the stock is $20.How much income must Peter report at the date of exercise?

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Definitions:

Removes Carbon

The process of removing carbon typically refers to extracting carbon dioxide (CO2) from the atmosphere or emissions, a critical action for reducing global warming and climate change.

Atmosphere

The layer of gases surrounding a planet, which for Earth is composed primarily of nitrogen and oxygen and protects it from the sun's radiation and space debris.

Photosynthesis

The process by which green plants, algae, and some bacteria convert light energy into chemical energy stored in glucose.

Carbon

A chemical element with symbol C and atomic number 6, essential to all known life forms and the basis of organic chemistry.

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