At the time she started working for her employer, ABCD Inc., S's employer granted her an Incentive Stock Option to purchase 500 shares of ABCD Inc. stock for $12 per share. At the time she started working for the company, ABCD Inc. stock had a market price of $11 per share. Three years later, when the share price was $25 per share, she exercised all of her options. S held the shares for two additional years after exercise and sold them when the market price was $32. How much gain did S recognize in the year of sale and how much tax did she pay on the sale assuming her marginal tax rate on ordinary income was 37 percent (and marginal tax rate on long-term capital gains was 20%)? Note there are two parts to this question. a. Gain recognized on sale of shares $ b. Tax paid on sale of shares $