On October 23, 2014, McIntyre Sells 700 Shares of Stock

Multiple Choice

On October 23, 2014, McIntyre sells 700 shares of stock at $26 per share. McIntyre acquired the stock on June 1, 2013, 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 2014, McIntyre must report Ordinary Capital Income Gain

A) $-0- $7,000
B) $-0- $9,800
C) $9,800 $-0-
D) $2,800 $7,000