Question 6 In 2012 Shelly was granted 1,000 NQSOS by her employer Starlight Inc. (strike price is $20/share). In 2014, when Shelly's options vested, Starlight stock was trading for $35/share. In 2015, Shelly exercised all 1,000 options when Starlight stock was trading for $60/share. Shelly held the shares for 13 months until November 2016 when she sold all 1,000 shares for $65/share. Part 1: How much income will Shelly recognize on the vest date? 15000 Part 2: How much income will Shelly recognize on the exercise date? 0 0.33/1 pts Part 3: How much income will Shelly recognize on the sale date? 5000 Answer 1: A

In 2012 Shelly was granted 1,000 NQSOs by her employer Starlight Inc. (strike price is $20/ share). In 2014 , when Shelly's options vested, Starlight stock was trading for $35/ share. In 2015 , Shelly exercised all 1,000 options when Starlight stock was trading for $60/ share. Shelly held the shares for 13 months until November 2016 when she sold all 1,000 shares for $65/ share. Part 1: How much income will Shelly recognize on the vest date? Part 2: How much income will Shelly recognize on the exercise date? Part 3: How much income will Shelly recognize on the sale date