Question: Ellison exercised a non - statutory stock option on May 3 1 , 2 0 2 3 . He paid $ 1 6 , 4

Ellison exercised a non-statutory stock option on May 31,2023. He paid $16,400 shares of company stock the fair market value of the share on the date was $20,000. Although Ellison continues to hold these shares, he included the $4000 difference between the fair market value and the purchase price as compensation income when he filed his 2023 return. What is Ellison's basis in a stop?
A $0 B.$4000 C $16,00 d $20,000

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