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What are Bill and BK tax consequences for transactions

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Reference no: EM132078364

Question - Bill was awarded 3,000 options; each option allows him to purchase one share of BK's stock for $15. The stock is currently selling for $12 per share. Three years later, Bill exercises the options when the stock's current selling price is $21 per share. Two years later, Bill sells the stock for $20 per share. What are Bill's and BK's tax consequences for these transactions if the options are:

a. Incentive stock options.

b. Nonqualified stock options.

Reference no: EM132078364

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