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FIVE years ago, JUMPCO granted Jane Rosser regular options to purchase 1,000 shares of the corporation's stock at a strike price of $50 per share.
FIVE years ago, JUMPCO granted Jane Rosser regular options to purchase 1,000 shares of the corporation's stock at a strike price of $50 per share.
On the exercise date, the market price of the stock was $53 per share.
How much taxable income will Jane be required to report in the year the options were exercised?
$53,000 | ||
$50,000 | ||
$3,000 | ||
$0 |
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