Able, Inc. granted a Nongyalifed Stock Option for 100 shares to Tulsi (an employee) on April 10, Year 1. The option price and FMV on the date of grant was 65 per share. The option was trading on the New York Stock Exchange for $4 per share. Tulsi exercised the option on September 5, Year 1, when the FMV was 85 per share. She sold the stock on November 20, Year 3 for 95 per share. What, if any, are the gains/losses in years 1 and 3? What is the tax on these gains assuming her marginal tax rate is 35 % and her capital gains rate is 15%