On October 23,2013,McIntyre sells 700 shares of stock at $26 per share.McIntyre acquired the stock on June 1,2012,when he exercised his option to purchase the shares through his company's incentive stock option plan.The exercise price was $12 per share and the fair market value of the stock at the date of exercise was $16 per share.For 2013,McIntyre must report
$\begin{array}{ll}
\text { Ordinary }&\text { Capital }\
\underline{\text { Income }}& \underline{\text { Gain }}\
a.{\$-0-} &{\$ 7,000} \
b.\$-0- & \$ 9,800 \
c.\$ 9,800 & \$-0- \
d.\$ 2,800 & \$ 7,000
\end{array}$

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The Answer of On October 23,2013,McIntyre sells 700 shares of stock at $26 per share.McIntyre acquired the stock on June 1,2012,when he exercised his option to purchase the shares through his company's incentive stock option plan.The exercise price was $12 per share and the fair market value of the stock at the date of exercise was $16 per share.For 2013,McIntyre must report
$\begin{array}{ll}
\text { Ordinary }&\text { Capital }\
\underline{\text { Income }}& \underline{\text { Gain }}\
a.{\$-0-} &{\$ 7,000} \
b.\$-0- & \$ 9,800 \
c.\$ 9,800 & \$-0- \
d.\$ 2,800 & \$ 7,000
\end{array}$

On October 23,2013,McIntyre Sells 700 Shares of Stock at $26