Sarafina is a good employee. Her employer, XYZ Company, a public corporation, rewards Sarafina with stock options for 30

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Sarafina Is A Good Employee Her Employer Xyz Company A Public Corporation Rewards Sarafina With Stock Options For 30 1 (30.11 KiB) Viewed 28 times

Sarafina is a good employee. Her employer, XYZ Company, a public corporation, rewards Sarafina with stock options for 300 shares on June 2nd, 2021. The options have an exercise price of $20 and the price was $23 on the date they were granted. The company does well, and Sarafina exercises the stock options on May 30, 2023, when the stock price is $27. Sarafina sells the shares one year later for $32 per share. Calculate and explain the tax consequences when: a) the options are granted (June 2, 2021), b) the options are exercised (May 30, 2023), and c) the shares are sold (May 30, 2024).