13. On December 1 of the current year, Ms. Wong purchases 2,000 shares of Red Dog Ltd. under a stock option plan. Black Angus Ltd. is a public corporation. Ms. Wong provides you with the following information:

bullet Stock Option granted on June 1 of the prior year and Fair Market Value (FMV) at the "grant" date = $6/share

bullet Option price, offered to employees = $6/share

bullet Stock Option exercised on Nov. 1 of the current year and FMV at the "exercise" date = $10/share

On December 31 of the current year, Ms. Wong continues to own the 2,000 shares of Red Dog Ltd. The FMV of the shares on December 31 is $16 per share and Ms. Wong anticipates the share value will continue to increase. The taxable employment benefit arising from the stock option for Ms. Wong in the current year is:

Choose the correct answer.

A. $0

B. $ 8,000

C. $20,000

D. $12,000