Receipt of the incentive stock options

Reference no: EM13130901

Instead of acquiring stock, Maritza received "incentive stock options" on January 3, 2010. These incentive stock options allow Maritza to purchase up to 100,000 shares of M3 common stock for $0.01 per share (the fair market value on January 3, 2010). On December 31, 2010, the fair market value of the M3 stock is $1.01 per share. What 2010 income, if any, must Maritza report due to the receipt of the incentive stock options?

a. $0

b. $1,000

c. $100,000

d. $101,000

Reference no: EM13130901

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