have an adjusted taxable basis

37. Jennifer received 1,000 SARs at $18, the current trading price of Clippers, Inc., her employer. If Jennifer exercises the SARs three years after the grant when Clipper’s stock is $20 per share, which of the following statements is true? (a) Jennifer will have an adjusted taxable basis of $18,000 in the Clippers, Inc. stock. (b) Jennifer will have W-2 income equal to $20,000. (c) Jennifer will have long-term capital gain of $2,000. (d) Jennifer will have W-2 income equal to $2,000