$7\mathrm{.}8\%$ complete

Question

Marisol was granted $100$ ISO on January $12,$ last year. At the time of the option grant, the value of the underlying stock was $$100$ and the exercise price was equal to $$100.$ If Marisol exercises the options on August $22$ of this year, when the stock is valued at $$145,$ what are the tax consequences $($per share$)$ to Marisol?

A$.$$$45$ of W$-2$ income, $$100$ of short$-$term capital gain.

B$.$$$100$ of W$-2$ income, $$45$ of short$-$term capital gain.

C$.$No W$2$ income tax Implications.

D$.$$$45$ of W$-2$ income$\mathrm{.}7\mathrm{.}8\%$ complete

Question

Marisol was granted $100$ ISO on January $12,$ last year. At the time of the option grant, the value of the underlying stock was $$100$ and the exercise price was equal to $$100.$ If Marisol exercises the options on August $22$ of this year, when the stock is valued at $$145,$ what are the tax consequences $($per share$)$ to Marisol?

A$.$$$45$ of W$-2$ income, $$100$ of short$-$term capital gain.

B$.$$$100$ of W$-2$ income, $$45$ of short$-$term capital gain.

C$.$No W$2$ income tax Implications.

D$.$$$45$ of W$-2$ income.