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uinn exercised a nonstatutory stock option on August 5, 2022. He purchased 500 shares of his company's stock for $5,000. The fair market value of
uinn exercised a nonstatutory stock option on August 5, 2022. He purchased 500 shares of his company's stock for $5,000. The fair market value of the stock at the time of purchase was $7,500. He included the $2,500 difference between the fair market value and the purchase price as compensation income when he filed his 2022 return. What is Quinn's basis in the underlying stock? $0 $2,500 $5,000 $7,500
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