On October 2,2013,Miriam Sells 1,000 Shares of Stock at $20

Short Answer

On October 2,2013,Miriam sells 1,000 shares of stock at $20 per share.Miriam acquired the stock on November 12,2012,when she exercised her option to purchase the shares through her company's incentive stock option plan.The exercise price was $11 per share and the fair market value of the stock at the date of exercise was $14 per share.For 2013,Miriam must report
$\begin{array}{ll}&\text { Ordinary } & \text { Capital } \\&\text { Income }&\text { Gain } \\a.&\$3,000&\$6,000\\\text { b. } &\$ 6,000 & \$ 3,000 \\\text { c. }& \$ 9,000 & \$-000 \\\text { d. }& \$-0- & \$ 9,000\end{array}$