In 2010, Ross was granted an incentive stock option (ISO) by her employer as part of an executive compensation package. Ross exercised the ISO in 2013 and sold the stock in 2015 at a gain. Ross was subject to regular tax for the year in which the
a. ISO was granted.
b. ISO was exercised.
c. Stock was sold.
d. Employer claimed a compensation deduction for the ISO.
Answer: C