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Andrea received 100 nonqualified stock options (NQSOs) when she started working at Shortleaf Pine Co. At that time, the stock price was $6 per share.
Andrea received 100 nonqualified stock options (NQSOs) when she started working at Shortleaf Pine Co. At that time, the stock price was $6 per share. Each option gives her the right to purchase one share of stock for $8 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later, she sold all of the shares for $20 per share. What amount and character of income must Andrea recognize on the exercise date? Select one: O A. $900, ordinary O B. $ 700, ordinary O C. $900, capital OD. $0
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