Suzanne received 20 stock options (each option gives her the right to purchase 20 shares of stock for $12 per share) at the time she started working…

Suzanne received 20 stock options (each option gives her the right to purchase 20 shares of stock for $12 per share) at the time she started working when the stock price was $13 per share. Three years later, when the share price was $23 per share, she exercised all of her options. Suzanne held the shares for two additional years and sold them when the market price was $30. Her marginal tax rate is 32% and her capital gains tax rate is 15%. 

1. Compute her income and tax liability from these transactions assuming that the stock options are ISOs.
2. Compute her income and tax liability from these transactions assuming that the stock options are NQOs.

1. Assuming the stock options are ISO’s

What is: ordinary income recognized, capital gain recognized, total tax liability from these transactions

2 Assuming the stock options are NQO’s

What is: ordinary income recognized, capital gain recognized, total tax liability from these transactions