Choose the response that accurately describes the amount and type of income recognized when the sale of stocks acquired through an employee stock purchase plan (ESPP) does not meet the holding period requirement

A)Ordinary income from compensation equal to the amount by which the fair market value at the time of exercise exceeded the option price.

B) Ordinary income from the compensation equal to the sale price of the stock

C) A short-term capital gain to the difference between the option and the fair market value of the stock on the excersie date

D) A short-term capital gain to the sale price of the stock