In May 2009,Egret,Inc.issues options to Andrea,a corporate officer,to purchase 200 shares of Egret stock under an ISO plan.At the date the stock options are issued,the fair market value of the stock is $900 per share and the option price is $1,200 per share.The stock becomes freely transferable in 2010.Andrea exercises the options in November 2009 when the stock is selling for $1,600 per share.She sells the stock in December 2011 for $1,800 per share.

Question

Quizplus · Accepted Answer

The Answer of In May 2009,Egret,Inc.issues options to Andrea,a corporate officer,to purchase 200 shares of Egret stock under an ISO plan.At the date the stock options are issued,the fair market value of the stock is $900 per share and the option price is $1,200 per share.The stock becomes freely transferable in 2010.Andrea exercises the options in November 2009 when the stock is selling for $1,600 per share.She sells the stock in December 2011 for $1,800 per share.