On October 23,2013,McIntyre Sells 700 Shares of Stock at $26

Short Answer

On October 23,2013,McIntyre sells 700 shares of stock at $26 per share.McIntyre acquired the stock on June 1,2012,when he exercised his option to purchase the shares through his company's incentive stock option plan.The exercise price was $12 per share and the fair market value of the stock at the date of exercise was $16 per share.For 2013,McIntyre must report
$\begin{array}{ll}&\text { Ordinary } & \text { Capital } \\&\text { Income }&\text { Gain } \\a.&\$-0-&\$7,000\\\text { b. } &\$ -0-& \$ 9,800 \\\text { c. }& \$ 9,8900 & \$-0- \\\text { d. }& \$2,800 & \$ 7,000\end{array}$