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On October 2, 2018, Miriam Sells 1,000 Shares of Stock  Ordinary  Capital  Income  Gain \begin{array}{ll}\text { Ordinary } & \text { Capital } \\\text { Income } & \text { Gain }\end{array}

Question 74

Short Answer

On October 2, 2018, Miriam sells 1,000 shares of stock at $20 per share. Miriam acquired the stock on November 12, 2017, when she exercised her option to purchase the shares through her company's incentive stock option plan. The exercise price was $11 per share and the fair market value of the stock at the date of exercise was $14 per share. For 2018, Miriam must report
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 Ordinary  Capital  Income  Gain \begin{array}{ll}\text { Ordinary } & \text { Capital } \\\text { Income } & \text { Gain }\end{array}
A) $3,000$6,000\begin{array}{ll}\$ 3,000 & \$ 6,000 \\\end{array}
B) $6,000$3,000\begin{array}{ll}\$ 6,000 & \$ 3,000 \\\end{array}
C) $9,000$0\begin{array}{ll}\$ 9,000 & \$-0- \\\end{array}
D) $0$9,000\begin{array}{ll}\$-0- & \$ 9,000\end{array}

Income Gain

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