On October 23, 2018, McIntyre Sells 700 Shares of Stock $\begin{array}{ll}\text { Ordinary } & \text { Capital } \\\text { Income } & \text { Gain }\end{array}$

Short Answer

On October 23, 2018, McIntyre sells 700 shares of stock at $26 per share. McIntyre acquired the stock on June 1, 2017, 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 2018, McIntyre must report
?
$\begin{array}{ll}\text { Ordinary } & \text { Capital } \\\text { Income } & \text { Gain }\end{array}$
A) $\$-0-\quad \$ 7,000$
B) $\$-0-\quad \$ 9,800$
C) $\$ 9,800 \quad \$-0 -$
D) $\$ 2,800 \quad \$ 7,000$

Income Gain