Haven received 200 NQOs (each option gives him the right to purchase 20 shares of Barlow Corporation stock for $7 per share) at the time he started working for Barlow Corporation three years ago when its stock price was $7 per share. Now that Barlows share price is $50 per share, he intends to exercise all of his options. After acquiring the 4,000 Barlow shares with his stock options, he intends to hold the shares for more than one year and then sell the shares when the price reaches $75 per share. (Leave no answer blank. Enter zero if applicable. Input all amounts as positive values.)

a. What are Haven's taxes due on the grant date, exercise date, and sale date, assuming his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent?

Date	Amount
Tax due on grant date	$0
Tax due in year of exercise	$0
Tax due in year of sale

b. What are the cash flow effects for Barlow Corporation resulting from Havens option exercise? How would it change if Barlow's marginal rate were 0 percent?

Date	Amount
Tax benefit on grant date
Tax benefit in year of exercise
Tax benefit in year of sale
Tax benefit when tax rate is 0%