Dixie was granted 10 NQOs (each option gives her the right to purchase 10 shares at $8 per share). When she began working the stock was selling for $6 per share. She exercised all her options when the market value was $15 per share. Twenty months later Dixie sold all her shares for $20 per share. What amount of gain must Dixie report on the sale of these shares and how much tax will she pay under the assumption that her marginal tax rate is 37%.

Gain:

Income Tax: