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1. On January 1, 2016, American Corporation grants a stock option to Kay, an employee. On January 1, 2016, the FMV of the American stock is $10. The option price is also $10. The option permits Kay to purchase 1,000 shares of American stock. On June 30, 2018, Kay bought 1,000 shares, when the stock's FMV was $40. Her stock was fully vested. On January 1, 2020, Kay sold the 1,000 shares of American stock, for $50 per share Assume this is a non-qualified stock option. How much ordinary income does Kay recognize as a result of acquiring and selling this stock? 0 $30,000 $10,000 0 $20,000 O $40,000 Question 2 1 pts 2. On January 1, 2016, American Corporation grants a stock option to Kay, an employee. On January 1, 2016, the FMV of the American stock is $10. The option price is also $10. The option permits Kay to purchase 1,000 shares of American stock. On June 30, 2018, Kay bought 1,000 shares, when the stock's FMV was $40. Her stock was fully vested. On January 1, 2020, Kay sold the 1,000 shares of American stock, for $50 per share Assume this is a non-qualified stock option. How much capital gain does Kay recognize as a result of acquiring and selling this stock? $10,000 O $20,000 $30,000 $40,000