Maren received 12 NQOs (each option gives her the right to purchase 13 shares of stock for $10 per share)at the time she started working when the stock price was $8 per share. When the share price was $17 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $22 per share. How much gain will Maren recognize on the sale of the shares and how much tax will she pay assuming her marginal tax rate is 37 percent?
A)$0 gain and $0 tax
B)$780 gain and $156 tax
C)$780 gain and $289 tax
D)$1,872 gain and $374 tax

Question

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The Answer of Maren received 12 NQOs (each option gives her the right to purchase 13 shares of stock for $10 per share)at the time she started working when the stock price was $8 per share. When the share price was $17 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $22 per share. How much gain will Maren recognize on the sale of the shares and how much tax will she pay assuming her marginal tax rate is 37 percent?
A)$0 gain and $0 tax
B)$780 gain and $156 tax
C)$780 gain and $289 tax
D)$1,872 gain and $374 tax

Maren Received 12 NQOs (Each Option Gives Her the Right