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9. Preferred Accounting Specialists, a publicly traded company (ticker PAS), issues you 100 Incentive Stock Options with a grant price of $47.00 a share. PAS

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9. Preferred Accounting Specialists, a publicly traded company (ticker PAS), issues you 100 Incentive Stock Options with a grant price of $47.00 a share. PAS is currently trading at $47.50 a share with a target price of $49.00 a share by the end of this taxable year. You are unsure if you have a taxable gain. Upon research you determine that if the stock hits the target price by year end, your taxable gain will be: A. $0 B. $4,700 C. $4,750 D. $4,900

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