On November 1 of the current year, Ms. Ramus purchases 1 comma 200 shares of...

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Accounting

On November 1 of the current year, Ms. Ramus purchases 1 comma 200 shares of Burnsboro Ltd. under a stock option plan. Burnsboro Ltd. is a public corporation. Ms. Ramus provides you with the following information:
bullet Stock Option granted on June 1 of the prior year and Fair Market Value(FMV) at the "grant" date: $ 8 per share
bullet Option price, offered to employees: $ 8 per share
bullet Stock Option exercised on November 1 of the current year and FMV at the "exercise" date= $ 11 per share
On December 31 of the current year, Ms. Ramus continues to own the 1 comma 200 shares of Burnsboro Ltd. The FMV of the shares on December 31 is $ 13 per share and Ms. Ramus anticipates the share value will continue to increase. What is the taxable employment benefit arising from the stock option for Ms. Ramus in the current year?
Question content area bottom
Part 1
A.$ 6 comma 000
$ 6 comma 000
B.$ 0
$ 0
C.$ 3 comma 600
$ 3 comma 600
D.$ 9 comma 600
$ 9 comma 600

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