On May 1, 2017, Peyton Is Granted the Right to Acquire

Essay

On May 1, 2017, 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, 2018 when the stock is selling for $20 per share, Peyton exercises his option to purchase the stock. Peyton sells the shares on November 15, 2019, 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