On May 21,2011,Becker Corporation Granted Howard an Option to Acquire

Multiple Choice

On May 21,2011,Becker Corporation granted Howard an option to acquire 200 shares of the company's stock for $8 per share.The fair market price of the stock on the date of grant was $14.The option did not have a readily ascertainable fair market value.Howard exercises the option on July 7,2013,when the fair market value of the stock is $20.How much must she report as income at the date of exercise?

A) $ -0-
B) $ 1,200
C) $ 2,400
D) $ 7,200
E) $10,800