Multiple Choice
Six years ago, HOPCO granted Lin Sing a nonqualified option to purchase 1,000 shares of HOPCO stock at $55 per share. On date of grant, the market price was $50 per share. This year, Lin Sing exercised the option when the market price was $64 per share. How much ordinary income does Lin Sing recognize because of the exercise?
A) $0
B) $5,000
C) $9,000
D) $14,000
Correct Answer:
Verified
Correct Answer:
Verified
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