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In 2018 your employer, a publicly traded corporation, ga you options to purchase 1,000 shares of their stock at a price of $13.26 per
In 2018 your employer, a publicly traded corporation, ga you options to purchase 1,000 shares of their stock at a price of $13.26 per share. At that time, the shares were trading at $13.25 a share. In April 2020, you exercise al 1,000 options when the shares are trading at $18.50 a share. In November 2020, you sell all of the shares for $19.75 a share. Document the tax impact of these transaction on your Net Income (Division B) and Taxabl Income (Division C).
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