In January 2020, Khors Company issued nonqualified stock options to its CEO, Jenny Svaro. Because the company did not expect Miss Svaro to leave the company, the options vested at the time they were granted with a total value of $54,750. In December of 2021, the company experienced a surge in its stock price, and Miss Svaro exercised the options. The total bargain element at the time of exercise was $69,500. For 2021, what is the booktax difference due to the options exercised?

• $54,750 unfavorable

• $14,750 favorable

• $69,500 favorable

• $14,750 unfavorable