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How much ordinary income did mike recognize

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Question - Mike Johnson's employer, Apple Tree, Inc., granted 1,000 ISOs and 1,000 NSOs on January 1st last year. The exercise price was $5 per share for both sets of options. Mike exercised both sets of options on July 1st last year, when the stock was worth $8 per share. Mike sold 400 shares acquired from the ISO grant and another 400 shares acquired from the NSO grant on April 1st this year for $14 per share. Mike sold the remaining shares from both the ISO and NSO grants on December 31st of this year for $20 per share.

Note: before answering these questions it can help to draw out a timeline.

How much ordinary income did Mike recognize when his employer granted him the ISOs and NSOs?

How much ordinary income did Mike recognize when he exercised the ISOs?

How much ordinary income did Mike recognize when he exercised the NSOs?

How much ordinary income did Mike recognize when he sold the shares acquired from the ISO grant on April 1st of this year?

How much ordinary income did Mike recognize when he sold the shares acquired from the NSO grant on April 1st of this year?

How much ordinary income did Mike recognize when he sold the shares acquired from the ISO grant on December 31st of this year?

How much ordinary income did Mike recognize when he sold the shares acquired from the NSO grant on December 31st of this year?

Reference no: EM133065940

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