On March 11,2014,Carlson Corporation Granted Lana an Option to Acquire

Multiple Choice

On March 11,2014,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 12,2015,when the fair market value of the stock is $15.On June 12,2016,the fair market value of the stock is $20 per share.How much must she report as income in 2016?

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