Six years ago, Corporation AT granted a stock option to employee N to purchase 1,000 shares of

Question:

Six years ago, AT granted a stock option to employee N to purchase 1,000 shares of AT stock for $15 per share. At date of grant, AT stock was selling for $14.10 per share. Over the last six years, the market price has steadily declined to $11.80 per share. What are the tax consequences to employee N when the option lapses?
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...