Hazel received 22 NQOs (each option gives her the right to purchase 12 shares of stock for $7 per share) at the time she started working when the stock price was $16 per share. Now that the share price is $23 per share, she exercises all of her options. How much income will Hazel recognize on the exercise date and how much tax will she pay assuming her marginal tax rate is 25 percent?