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Kindly help me, If my answer is correct. I need help for capital gain for no 1. Suzanne received 20 stock options (each option gives

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Kindly help me, If my answer is correct. I need help for capital gain for no 1.

Suzanne received 20 stock options (each option gives her the right to purchase 20 shares of stock for $12 per share) at the time she started working when the stock price was $13 per share. Three years later, when the share price was $23 per share, she exercised all of her options. Suzanne held the shares for two additional years and sold them when the market price was $30. Her marginal tax rate is 32% and her capital gains tax rate is 15%. 1. Compute her income and tax liability from these transactions assuming that the stock options are ISOs. 2. Compute her income and tax liability from these transactions assuming that the stock options are NQOs. 1. Assuming the stock options are ISOs: Ordinary income recognized 7200 Capital gain recognized Total tax liability from these transactions 1080 2. Assuming the stock options are NQOs: Ordinary income recognized 4400 Capital gain recognized 2800 Total tax liability from these transactions 1828

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