Nick Icamina is the CEO of Chaos Baseball Equipment, Inc. (Chaos). It is a rapidly growing publicly traded company in the United States. He was awarded the following stock options from his company:

Option Grant	Grant Date	Type	Exercise Price	# Shares
A	February 1, Year 1	ISO	$20	100
B	July 1, Year 2	NQSO	$25	100
C	August 1, Year 3	ISO	$30	100
D	May 1, Year 4	NQSO	$30	100

During Year 5, Nick had the following transactions regarding the above stock options:

Option Grant	Date	Action	# Shares	Market Price on Action Date
A	February 1	Exercised	100	$42
A	February 1	Sold	100	$42
B	February 14	Exercised	100	$45
C	February 14	Exercised	100	$45
D	May 1	Exercised	100	$50
D	June 1	Sold	100	$60

A. How much income would Nick have when his ISOs are granted?

B. What are the tax implications for the A options during Year 5?

C. What are the tax implications for the B options during Year 5?

D. What are the tax implications for the C options during Year 5?

E. What are the tax implications for the D options during Year 5?

F. Over the last five years, Nicks salary has increased from $450,000 to $900,000 and his annual bonus has increased to $400,000 as the market value of the company has increased. What are some of the tax implications?

Thank You!