Zaire Corporation granted an ISO for 250 shares of its stock to Bruno on July 20, 2016,

Question:

Zaire Corporation granted an ISO for 250 shares of its stock to Bruno on July 20, 2016, for service rendered. The option price was $130 and the fair market value was $130 on the date of the grant. Bruno exercised the option on September 1, 2016, when the fair market value of the stock was $225 per share. He sells the stock on November 30, 2017, for $350 per share.
a. What is the amount of the tax preference item that Bruno has on the exercise date?
b. What is Bruno’s long-term capital gain on the sale of the stock in 2017?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...