On November 1 of the current year, Ms. Rustowicz purchases 500 shares of...

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Accounting

On November 1 of the current year, Ms. Rustowicz purchases 500 shares
of Standard Motors Ltd. under a stock option plan. Standard Motors Ltd. is
a public corporation. Ms. Rustowicz provides you with the
following information:
Stock Option granted on June 1 of the prior year and Fair Market
Value (FMV) at the "grant" date: $3 per share
Option price, offered to employees: $3 per share
Stock Option exercised on November 1 of the current year and FMV at
the "exercise" date =$10 per share
On December 31 of the current year, Ms. Rustowicz continues to own the
500 shares of Standard Motors Ltd. The FMV of the shares on December
31 is $13 per share and Ms. Rustowicz anticipates the share value will
A. $3,500
B. $5,000
C. $0
D. $1,500
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