On October 23,2013,McIntyre sells 700 shares of stock at $26 per share.McIntyre acquired the stock on June 1,2012,when he exercised his option to purchase the shares through his company's incentive stock option plan.The exercise price was $12 per share and the fair market value of the stock at the date of exercise was $16 per share.For 2013,McIntyre must report
$\begin{array}{ll}
&\text { Ordinary } & \text { Capital } \
&\text { Income }&\text { Gain } \
a.&\$-0-&\$7,000\
\text { b. } &\$ -0-& \$ 9,800 \
\text { c. }& \$ 9,8900 & \$-0- \
\text { d. }& \$2,800 & \$ 7,000
\end{array}$

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The Answer of On October 23,2013,McIntyre sells 700 shares of stock at $26 per share.McIntyre acquired the stock on June 1,2012,when he exercised his option to purchase the shares through his company's incentive stock option plan.The exercise price was $12 per share and the fair market value of the stock at the date of exercise was $16 per share.For 2013,McIntyre must report
$\begin{array}{ll}
&\text { Ordinary } & \text { Capital } \
&\text { Income }&\text { Gain } \
a.&\$-0-&\$7,000\
\text { b. } &\$ -0-& \$ 9,800 \
\text { c. }& \$ 9,8900 & \$-0- \
\text { d. }& \$2,800 & \$ 7,000
\end{array}$

On October 23,2013,McIntyre Sells 700 Shares of Stock at $26