Helen Receives the Right to Acquire 700 Shares of Smith

Short Answer

Helen receives the right to acquire 700 shares of Smith Corporation stock through the company's incentive stock option plan.The fair market value of the stock at the date of the grant is $8 and the exercise price of the option is $15 per share.The fair market value of the stock at the date of exercise is $19.Helen will recognize income at the date of grant and the exercise date of
$\begin{array}{lc}\text { Date of grant } & \text { Exercise date } \\\text { a. } \$-0- & \$-0- \\\text { b. } \$-0- & \$ 2,800 \\\text { c. } \$-0- & \$ 4,900 \\\text { d. } \$ 5,600 & \$-0-\end{array}$