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1. Jeremy is offered 1,000 options on Jan 1, 2018. The exercise price is $5. In 2020, he exercises all 1,000 options when the price

1. Jeremy is offered 1,000 options on Jan 1, 2018. The exercise price is $5. In 2020, he exercises all 1,000 options when the price was $8. In 2022, he sells all 1,000 when the price was $12. Assume the options are ISOs. What is the income reported in 2020?

2. Jeremy is offered 1,000 options on Jan 1, 2018. The exercise price is $5. In 2020, he exercises all 1,000 options when the price was $8. In 2022, he sells all 1,000 when the price was $12. Assume the options are NQOs. What is the income reported in 2022?

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