Tom receives options to purchase 500 shares of their employer stock at $30 per share when the FMV of the stock was $35 per share under the terms of an employee stock purchase plan (ESPP). Ami exercises the options when the market price of the stock is $35 per share. Three years later, Tom sells the 500 shares for $50 per share. Based on the information provided, what is the amount of ordinary income and capital gain recognized on the sale?

Answer rating: 100% (QA)

To determine the amount of ordinary income and capital gain recognized on the sale of the stock we ... View the full answer