Question: Five years ago, ABC, Incorporated granted M s . L u a n incentive stock option t o purchase 1 , 0 0 0 shares

Five years ago, ABC, Incorporated granted Ms.Luan incentive stock option to purchase 1,000 shares of ABC stock at $60 per share. On date of grant, the market price was $50 per share. This year, Ms.Lu exercised the option when the market price was $70 per share. Determine Ms.Lu basis in the 1,000 shares, if any.

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