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Completion Status: QUESTION 34 Six years ago, Hernndez Corporation granted Mara the option to purchase 5,000 shares of Hernndez stock for $13 per share. On
Completion Status: QUESTION 34 Six years ago, Hernndez Corporation granted Mara the option to purchase 5,000 shares of Hernndez stock for $13 per share. On date of grant, the market price was $11 per share. Last year, Mara exercised the option when the market price was $47 per share. This year, she sold the stock for $40 per share. Compute Mara's gain or loss recognized on sale assuming the option was (1) an incentive stock option (ISO) and (2) a nonqualified option? A Incentive stock option (ISO) $135,000 gain B. Incentive stock option (ISO) $35,000 loss OC. Incentive stock option (ISO) $135,000 gain D. Incentive stock option (ISO) $35,000 loss E. Incentive stock option (ISO) $10,000 loss Nonqualified option $135,000 gain Nonqualified option $35,000 loss Nonqualified option $35,000 loss Nonqualified option $135,000 gain Nonqualified option $10,000 loss 2.5 points Save Asave 2.5 points Save Anw party
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