Test $-$ Senior Tax Specialist Certification Test $(2024)$

Employee Stock Options

Question $60$ of $75.$

How is compensation from the exercise of nonstatuton stock options reported on Form W$-2$ if compensation is NOT recognized on the date of the grant?

In box $12,$ the code $"\backslash ($ V $\backslash )"$ indicates a specific type of income The amount reported with this code represents theFair market value of the stock over the exercise price at the time of exercise.Fair market value of the stock over grant price at the time of vesting.Grant price of the stock over the exercise price at the time of exercise.Grant price of the stock over the fair market value at the time of vesting.Mark for follow up