On October 2, 2018, Miriam Sells 1,000 Shares of Stock $\begin{array}{ll}\text { Ordinary } & \text { Capital } \\\text { Income } & \text { Gain }\end{array}$

question 74

Short Answer

On October 2, 2018, Miriam sells 1,000 shares of stock at $20 per share. Miriam acquired the stock on November 12, 2017, 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 2018, Miriam must report
?
$\begin{array}{ll}\text { Ordinary } & \text { Capital } \\\text { Income } & \text { Gain }\end{array}$
A) $\begin{array}{ll}\$ 3,000 & \$ 6,000 \\\end{array}$
B) $\begin{array}{ll}\$ 6,000 & \$ 3,000 \\\end{array}$
C) $\begin{array}{ll}\$ 9,000 & \$-0- \\\end{array}$
D) $\begin{array}{ll}\$-0- & \$ 9,000\end{array}$

Income Gain

• A)\(\begin{array}{ll}
• \$ 3,000 & \$ 6,000 \\\end{array}\)
• B) \(\begin{array}{ll}\$ 6,000 & \$ 3,000 \\\end{array}\)
• C) \(\begin{array}{ll}\$ 9,000 & \$-0- \\\end{array}\)
• D) \(\begin{array}{ll}\$-0- & \$ 9,000
• \end{array}\)
• Income Gain