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Randy received 100 incentive stock options (ISOs) from his employer, Yorktown Corporation, on June 30,...

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Accounting

Randy received 100 incentive stock options (ISOs) from his employer, Yorktown Corporation, on June 30, 2021. Each option allows him to buy one share of stock for $20, the market value of the stock on the date the options were granted. Randy exercises all of his options on July 15, 2022, when the market value of the stock was $32 per share. Randy sells of his stock on August 1, 2023, for $36 per share. Which statement is correct?

Group of answer choices

Randy reports $1,600 (100 x $16) of compensation income on August 1, 2023.

Randy reports $1,600 (100 x $16) of long-term capital gain on August 1, 2023.

Randy reports $1,200 (100 x $12) of compensation income on July 15, 2022.

Randy reports $2,000 (100 x $20) of compensation income on June 30, 2021.

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