On June 1, 2014, Sutton Corporation grants Anne an option under its nonqualified stock option plan to acquire 300 shares of the company's stock for $12 per share. The fair market price of the stock on the date of grant is $18. The fair market value of the option is $4. How much must Anne report as income at the date of grant?
A) $-0-
B) $1,200
C) $1,800
D) $3,600
E) $5,400

Question

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The Answer of On June 1, 2014, Sutton Corporation grants Anne an option under its nonqualified stock option plan to acquire 300 shares of the company's stock for $12 per share. The fair market price of the stock on the date of grant is $18. The fair market value of the option is $4. How much must Anne report as income at the date of grant?
A) $-0-
B) $1,200
C) $1,800
D) $3,600
E) $5,400

On June 1, 2014, Sutton Corporation Grants Anne an Option