Question: Five years ago, ABC, Incorporated granted Ms . Lu an incentive stock option to purchase 1 , 0 0 0 shares of ABC stock at

Five years ago, ABC, Incorporated granted Ms. Lu an 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. "How much regular taxable income, if any, does Ms. Lu recognize when she exercises the stock option in the current year?"

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