Suzy Service Company (SSC) grants an ISO to Bill on March 31, 2016, for 200 shares with an exercise price of $3, the FMV of the stock of March 31, 2016. Mary Jo exercises the ISO on April 15, 2017, when the stock is worth $5 a share. She sold the stock on September 12, 2016, for $6 a share.

What are the tax consequences to Mary Jo and SSC on the following dates?

(a) March 31, 2016 (Grant)

(b) April 15, 2017 (Exercise)

(c) September 12, 2017 (Sale of stock)

Answer rating: 100% (QA)

On March 31 2016 the tax consequences to Mary Jo and S SC are n... View the full answer