Respuesta :
$0 ordinary income does she recognize because of the exercise? multiple choice. Therefore option A is correct.
What is Ordinary Income?
Any sort of income that is taxed at regular rates and received by a person or entity is referred to as ordinary income. In addition to wages and salaries, it also includes short-term capital gains, unqualified dividends, gratuities, bonuses, commissions, rents, royalties, and interest income.
Personal income and company revenue are the two main types of ordinary income. Any type of cash inflow that is subject to the regular marginal income tax rates, as specified by the Internal Revenue Service, is referred to as personal ordinary income (IRS).
Therefore option A is correct.
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Your Question was incomplete but most probably your question was.
six years ago, hopco granted Mrs. sing an incentive stock option (iso) to purchase 1,000 shares of hopco stock for $55 per share. on the date of the grant, the market price was $50 per share. this year, Mrs. sing exercised the iso when the market price was $64 per share. how much ordinary income does she recognize because of the exercise? multiple choice.
a) $0
b) $5,000
c) $9,000
d) $14,000
