An employee received an option to purchase shares of a public company at

$8

per share when the price of the stock was

$10

per share. Ihe

($)/(_())

difterence creates a taxable benefit that is taxed as\ Mutrple Choice\ Erpioyment income when the option is exercised.\ Employment income when the option is granted.\ Propery income when the option is exercised.\ Property income uthen the option is granted.

Transcribed Image Text:

An employee received an option to purchase shares of a public company at $8 per share when the price of the stock was $10 per share. The $2 difference creates a taxable benefit that is taxed as Multiple Choice Employment Income when the option is exercised. Employment Income when the option is granted. Property income when the option is exercised. Property income when the option is granted. An employee received an option to purchase shares of a public company at $8 per share when the price of the stock was $10 per share. The $2 difference creates a taxable benefit that is taxed as Multiple Choice Employment Income when the option is exercised. Employment Income when the option is granted. Property income when the option is exercised. Property income when the option is granted.