In 2009, BB granted an incentive stock option (ISO) to Mr. Yarnell to buy 6,00 shares of BB stock at $7.30 per share for 10 years. At the date of grant, BB stock was trading on the AMEX at $7.20 per share. In 2018, Mr. Yarnell exercised the option when the stock was trading at $21.60 per share.

a. How much income did Mr. Yarnell recognize in 2009 and 2018 because of the ISO? NOTE: I know no income will be recognized in 2009, however, for 2018 I came up with 85,800 which was incorrect. I looked in my text to see if I had done the calculations wrong and I'm still not finding anything.

How I came up with 85,800:

[(21.60 - 7.30) * 6,000] = 85,800

Help????