es he t Question 5 of 75. Lillian sells shares of stock she acquired by exercising options granted to her under an employee stock purchase plan (ESPP). Her employer did not offer the shares at a discount, so the price she paid when she purchased the stock was the fair market value at the time. If Lillian sells the stock for a profit in a qualifying disposition, how does she report the difference between her basis and the sale price? O Compensation income subject to income tax, as well as social security and medicare taxes. O Long-term capital gain. O Ordinary income. O Short-term capital gain. E Mark for follow up