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on january 15 , 2018 , sebastian exercised an incentive stock option (ISO) granted to him by his employer His option enabled him to purchased
on january 15 , 2018 , sebastian exercised an incentive stock option (ISO) granted to him by his employer His option enabled him to purchased 1000 shares of stock for $10 per share . When he exercised his option , the stock was trading at $15 per share He sold the stock at a gain six months later, when the stock was trading at $22 per share. how much does Sebastian report as ordinary income from compensation as a result of transaction ? a) $0 b) $5000 C ) $7000 d) $10000
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