In May 2011,Egret,Inc

question 2

Essay

In May 2011,Egret,Inc.issues options to Andrea,a corporate officer,to purchase 200 shares of Egret stock under an ISO plan.At the date the stock options are issued,the fair market value of the stock is $900 per share and the option price is $1,200 per share.The stock becomes freely transferable in 2012.Andrea exercises the options in November 2011 when the stock is selling for $1,600 per share.She sells the stock in December 2013 for $1,800 per share.

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Definitions:

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An individual who creates or discovers a new method, form, device, or other useful means that becomes known for the first time.

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