On May 1,2013,Peyton is granted the right to acquire 500 shares of the Simon Corporation for $18 per share.The option qualifies under the company's incentive stock option plan.The current fair market value of the stock is $10.On September 18,2014 when the stock is selling for $20 per share,Peyton exercises his option to purchase the stock.Peyton sells the shares on November 15,2015,for $30 per share.Determine the tax consequences for Peyton and the Simon Corporation on the
a.Date of grant

b.Date of exercise

c.Date of sale
c.Date of sale

Question

On May 1,2013,Peyton is granted the right to acquire 500 shares of the Simon Corporation for $18 per share.The option qualifies under the company's incentive stock option plan.The current fair market value of the stock is $10.On September 18,2014 when the stock is selling for $20 per share,Peyton exercises his option to purchase the stock.Peyton sells the shares on November 15,2015,for $30 per share.Determine the tax consequences for Peyton and the Simon Corporation on the
a.Date of grant
 
b.Date of exercise
 
c.Date of sale
c.Date of sale

Quizplus · Accepted Answer

The Answer of On May 1,2013,Peyton is granted the right to acquire 500 shares of the Simon Corporation for $18 per share.The option qualifies under the company's incentive stock option plan.The current fair market value of the stock is $10.On September 18,2014 when the stock is selling for $20 per share,Peyton exercises his option to purchase the stock.Peyton sells the shares on November 15,2015,for $30 per share.Determine the tax consequences for Peyton and the Simon Corporation on the
a.Date of grant
 
b.Date of exercise
 
c.Date of sale
c.Date of sale

On May 1,2013,Peyton Is Granted the Right to Acquire 500