Karen works for ATQ Corporation (a publicly traded company). On January 1, 2018, she was granted 10,000 nonqualified stock options and 5,000 incentive stock options, both with a strike price of $40. She intends to exercise the options as they vest. She will be 50% vested (NSOs and ISOs) on July 1, 2019, when the share price will be $47. The remaining options will vest on July 1, 2022 when the share price will be $67. She expects to sell all shares more than 12 months after exercise. What is supposed to be her total long-term/short-term capital gain if the shares vested in 2019 are sold at $57 and the remaining shares are sold at $77?

A. $135,000 LTCG ISO; $185,000 LTCG NQSO

B. $135,000 LTCG ISO; $100,000 LTCG NQSO

C. $50,000 LTCG ISO; $185,000 LTCG NQSO

D. $42,500 STCG and $92,500 LTCG ISO; $100,000 LTCG NQSO