Larry started working for Burgers, Inc. on June 1, 2020. At the end of 2020, Larry received 100 Burgers, Inc. stock options as part of his compensation. Each option allowed him to purchase one share of Burgers, Inc. for $20.00. Shares of Burgers, Inc. traded at $25.00 per share on December 31, 2020. An independent valuation firm valued each option at $5.00 as of that date. Larry did not make a 83(b) election.

Larry exercised all his options on September 15, 2022. On that date, stock of Burgers, Inc. traded for 37.00 per share on the open market.

Determine:

1. The amount of income Larry must recognize in 2020, upon receiving the options.
2. The amount of income Larry must recognize in 2022, upon exercising the options.
3. Larrys basis in the Bergers, Inc. stock he purchased through exercising the options.