Question: T . 3 6 PM Training detail: Curriculum Lance exercised a nonstatutory stock option on May 3 1 , 2 0 2 4 . He

T.36 PM
Training detail: Curriculum
Lance exercised a nonstatutory stock option on May 31,2024. 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 Lance 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 2024 return.
What is Lance's basis in the stock?
$0
$4,000
$16,000
$20,000
T . 3 6 PM Training detail: Curriculum Lance

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