Two years ago, Mrs EL was granted a stock option from her corporate employer At date of grant, the stock was selling at $14 per share, and the strike price was $18 per share This year, Mrs EL sold the option to an unrelated party for $26,000 How much gain does she recognize on this transaction ...

Two years ago, Mrs. EL was granted a stock option from her corporate employer. At date of

Question:

Two years ago, Mrs. EL was granted a stock option from her corporate employer. At date of grant, the stock was selling at $14 per share, and the was $18 per share. This year, Mrs. EL sold the option to an unrelated party for $26,000. How much gain does she recognize on this transaction?
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 50% (8 reviews)

Mrs EL did not recognize income on the r...View the full answer

Answered By

Somshukla Chakraborty

I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal. I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).

4.00+ 2+ Reviews 10+ Question Solved

Related Book For book-img-for-question

Principles Of Taxation For Business And Investment Planning 2018

ISBN: 9781259713729

21st Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

See More Books

Question Posted: Oct 31, 2017 02:04 AM

See More Questions

Two years ago, Mrs. EL was granted a stock option from her corporate employer. At date of

Question:

Step by Step Answer:

Mrs EL did not recognize income on the r...View the full answer

Principles Of Taxation For Business And Investment Planning 2018

Students also viewed these Taxation questions