In 2016, BT granted a nonqualified stock option to Ms. Pearl to buy 320 shares of BT stock at $39 per share for five years. At date of grant, BT stock was trading on Nasdaq for $37.38 per share. In 2021, Ms. Pearl exercised the option when BT's stock was trading at $51.60 per share. Required: a. How much income did Ms. Pearl recognize in 2016 and 2021 because of the stock option? b. Compute Ms. Pearl's basis in the 320 shares. c. What are the tax consequences of the stock option to BT in 2016 and 2021? Complete this question by entering your answers in the tabs below. Required A Required B Required C How much income did Ms. Pearl recognize in 2016 and 2021 because of the stock option? Recognized income in 2016 Amount Recognized income in 2021 < Required A Required B >