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On December 1 of the current year, Ms. Radford purchases 1,500 shares of Blue Sky Ltd. under a stock option plan. Black Angus Ltd. is
On December 1 of the current year, Ms. Radford purchases 1,500 shares of Blue Sky Ltd. under a stock option plan. Black Angus Ltd. is a public corporation. Ms. Radford provides you with the following information: Stock Option granted on June 1 of the prior year and Fair Market Value (FMV) at the "grant" date = $6/share Option price, offered to employees = $6/share Stock Option exercised on Nov. 1 of the current year and FMV at the "exercise" date = $10/share On December 31 of the current year, Ms. Radford continues to own the 1,500 shares of Blue Sky Ltd. The FMV of the shares on December 31 is $18 per share and Ms. Radford anticipates the share value will continue to increase. The taxable employment benefit arising from the stock option for Ms. Radford in the current year is: Choose the correct answer. O A. $0 OB. $18,000 O C. $9,000 OD. $6,000
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