In 2012, Ross was granted an incentive stock option (ISO) by his employer as part of an executive compensation package. Ross exercised the ISO in 2014 and sold the stock in 2016 at a gain. Ross's profit was subject to the income tax for the year in which the

a) Employer claimed a compensation deduction for the ISO.
b) Stock was sold.
c) ISO was exercised.
d) ISO was granted.

Ans: b) Stock was sold.

Business

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