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

question 85

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
$\begin{array}{ll}\text {Ordinary } &\text {Capital} \\\underline {\text { Income }} & \underline {\text { Gain }} \\a. \$ 3,000 & \$ 6,000 \\b.\$ 6,000 & \$ 3,000 \\c.\$ 9,000 & \$-0- \\d.\$-0- & \$ 9,000\end{array}$

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