have ordinary income

34. Marguerite received nonqualified stock options (NQSOs) with an exercise price equal to the FMV at the date of the grant of $22. Marguerite exercises the options 3 years after the grant date when the FMV of the stock was $30. Marguerite then sells the stock 3 years after exercising for $35. Which of the following statements are true? Page 9 of 12 1. At the date of the grant, Marguerite will have ordinary income of $22. 2. At the date of exercise, Marguerite will have W-2 income of $8. 3. At the date of sale, Marguerite will have long term capital gain of $5. 4. Marguerite’s employer will have a deductible expense in relation to this option of $22. (a) 3 only. (b) 2 and 3. (c) 2, 3, and 4. (d) 1, 2, 3, and 4