Cindy works for Sky Manufacturers Ltd., which is a public corporation. In 20x1 she was offered an option to purchase shares at $15 per share from her employer. The fair market value on that day was $17 per share. Cindy exercised her option in 20x3 and purchased 500 shares. The fair market value at that time was $21 per share. What is Cindy's tax treatment of this option on her 20x3 tax return? Multiple Choice $1,000 taxable benefit and no security option deduction $1.000 taxable benefit and a 50% security option deduction $3,000 taxable benefit and no security option deduction . $3,000 taxable benefit and a 50% security option deduction