On March 1, 2013, Tiny Inc., grants Tim a nonqualified stock option to acquire 1,000 shares of the companys stock for $12 per share. The fair market value of the stock on the date of grant is $15. The option does not have a readily ascertainable fair market value. On June 1, 2013, when the fair market value of the stock is $18, Tim exercises the stock option. Determine the tax consequences to Tim and Tiny Inc., on the grant date of the option and the exercise date.