On May 21, 2012, Becker Corporation Granted Howard an Option

Multiple Choice

On May 21, 2012, 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, 2014, 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