On May 21,2014,Becker Corporation Granted Howard an Option to Acquire

question 11

Multiple Choice

On May 21,2014,Becker Corporation granted Howard an option to acquire 200 shares of the company's stock for $8 per share.The fair market price of the stock on the date of grant was $14.The option did not have a readily ascertainable fair market value.Howard exercises the option on July 7,2016,when the fair market value of the stock is $20.How much must she report as income at the date of exercise?

• A)$-0-
• B)$1,200
• C)$2,400
• D)$7,200
• E)$10,800

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