Preston received 100 nonqualified stock options (each option allows the right to purchase 20 shares of Sport Inc. stock for \($15\) per share) at the time he started working for Sport Inc. on January 15, Year 2.

Sport Inc.’s stock price was \($12\) per share on that date. On July 15, Year 5, when Sport Inc.’s stock price is \($40\) per share, he exercised all of his options. After acquiring the 2,000 shares with his options, he held the shares until October 15, Year 6, and he sold the shares for \($65\) per share. What is Preston’s gain and character on the grant date (1/15/Y2), exercise date (1/15/Y5), and the sale date (10/15/Y6)?