M is employed by X Corporation. The corporation granted M qualified stock options (ISOs) on June 1, 2019. The stock was worth $25 per share at the time of grant. The options allow M to purchase 1,000 shares of stock at $30 per share ($30,000 total cost) within the next two years. Additional details: The options had no value on the date of grant as the stock was selling for $25 per share. M exercised the options July 5, 2020 when the stock was worth $70 per share. A. How much income or gain, if any, should M recognize in the year of grant (2019)? B. How much income or gain, if any, should M recognize in the year of exercise (2020)? C. Assume a change of facts: Assume M sold the stock 5 months after the options were exercised for $130,000. How much gain or income, if any, should M recognize? Be sure to identify the character of the gain and/or income to be recognized (i.e. capital or ordinary)