What effect would these transactions have

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Question - In 2019, an employee of a public corporation received a stock option to acquire 2,000 shares of the employer's common stock at a price of $15 per share. The market price of the shares at the time of grant was $13. In 2020, the employee exercised the option by purchasing 2,000 shares when the market price was $18. In 2021, the employee sold the shares at $20 per share. What effect would these transactions have on the employee's taxable income in 2019, 2020 and 2021?

Reference no: EM133110321

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