What amount is included in net income for tax purposes


Question: F is employed by a public corporation. In year 1, F was granted a stock option to acquire 2,000 shares from the treasury of her employer's corporation for $9 a share. At the time of receiving the option, the shares were valued at $11 per share. In year 2, F exercised her option and purchased 2,000 shares for $18,000. At the purchase date, the shares were valued at $14 per share. In year 6, F sold 2,000 shares for $19 per share. What amount is included in F's overall net income for tax purposes in year 6?

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Taxation: What amount is included in net income for tax purposes
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