Ellison exercised a non statutory stock option on May $31,2023.$ He paid $$16,000$ for $100$ shares of his company's stock. The fair market value of the shares on that date was $$20,000.$ Although Ellison continues to hold these shares, he included the $$4,000$ 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 the stock? Explain.

Answer rating: 100% (QA)

Ellisons basis in the stock will be his initial cost paid plus any amount report... View the full answer