Anton was granted a nonstatutory stock option on October 15, 2010. He exercised

Question

Anton was granted a nonstatutory stock option on October 15, 2010. He exercised the option on J specified that Anton must sell the stock back if he leaves the company for any reason bef1,2018. Whe compensation recognized? o October 15, 2010o O June 13, 2012 October 15, 2016 O Not enough information to make this determination Mark for follow up Question 32 of 50. What amount of income is recognized if the holding period requirement is not met for stock acquired through an employee stock purchase plan? Short-term capital gain equal to the difference between the option price and the fair market value of the stock on the exercise dat Ordinary income equal to the difference between the option price and the fair market value of the stock on the exercise date. Short-term capital gain equal to the difference between the option price and the price of the stock at the time of exercise. o Ordinary income equal to the difference between the option price and the price of the stock at the time of exercise. Mark for follow up Question 33 of so. tutory stock options reported on Form W-2 if compensation is N in compensation from the exercise of nonsta f the grant? The spread between the ie shown as a "V" in box 12

Explanation / Answer

In the given question, since the holding period requirement is not met for stock acquired through employee stock purchase plan, it will lead to short term capital gain.

Thus, options B and D are not correct.

Short Term Capital Gain= Net Sale Proceeds less Fair Market Value as at the date of exercise of option.

Thus, correct answer is A.

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