Mark received 10 ISOs (each option gives him the right to purchase 12 shares of Hendricks Corporation stock for $7 per share) at the time he started working for Hendricks Corporation five years ago, when Hendricks's stock price was $5 per share. Now that Hendricks's share price is $35 per share, Mark intends to exercise all of his options and hold all of his shares for more than one year. Assume that more than a year after exercise, Mark sells the stock for $35 a share.

Note: Enter all amounts as positive values. Leave no answers blank. Enter zero if applicable.

Required:

1. What are Mark's taxes due on the grant date, the exercise date, and the date he sells the shares, assuming his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent?

Grant Date = Tax Due ($?)

Exercise Date = Tax Due ($?)

Sales Date = Tax Due ($?)

2. What are Hendricks's tax consequences on the grant date, the exercise date, and the date Mark sells the shares?

Grant Date = Tax Benefit ($?)

Exercise Date = Tax Benefit ($?)

Sales Date = Tax Benefit ($?)