On May 21, 2016, Becker Corporation Granted Howard an Option

question 55

Multiple Choice

On May 21, 2016, 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, 2018, 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

---

Definitions:

Introduction

The initial section of a document or speech designed to present the topic, grab the audience's attention, and outline the content's purpose.

Preview Section

a segment of a document or presentation that gives the audience a glimpse or overview of the content that will follow.

Key Points

Essential or main aspects of a topic or argument.

Products

Goods or services offered by businesses to customers for purchase, usage, or consumption.