On June 1, 2014, Sutton Corporation Grants Anne an Option

Multiple Choice

On June 1, 2014, Sutton Corporation grants Anne an option under its nonqualified stock option plan to acquire 300 shares of the company's stock for $12 per share. The fair market price of the stock on the date of grant is $18. The fair market value of the option is $4. How much must Anne report as income at the date of grant?

A) $-0-
B) $1,200
C) $1,800
D) $3,600
E) $5,400