On May 1,2013,Peyton Is Granted the Right to Acquire 500

Essay

On May 1,2013,Peyton is granted the right to acquire 500 shares of the Simon Corporation for $18 per share.The option qualifies under the company's incentive stock option plan.The current fair market value of the stock is $10.On September 18,2014 when the stock is selling for $20 per share,Peyton exercises his option to purchase the stock.Peyton sells the shares on November 15,2015,for $30 per share.Determine the tax consequences for Peyton and the Simon Corporation on the
a.Date of grant

b.Date of exercise

c.Date of sale
c.Date of sale