On March 11, 2012, Carlson Corporation Granted Lana an Option

Multiple Choice

On March 11, 2012, Carlson Corporation granted Lana an option to acquire 200 shares of the company's stock for $6 per share. The fair market price of the stock on the date of grant was $10. The stock requires that Lana remain with the company for one year after the date of exercise. The option did not have a readily ascertainable fair market value. Lana exercises the option on June 12, 2013, when the fair market value of the stock is $15. On June 12, 2014, the fair market value of the stock is $20 per share. How much must she report as income in 2014?

A) $-0-
B) $1,200
C) $1,800
D) $2,800
E) $4,000