Pursuant to a written plan, Jones Corp. paid all its employees 100 stock options on January 1, 20X1. The stock is not readily tradeable on an established market. Ben, who is an employee but not an officer or shareholder, immediately exercised all his 100 options on January 1, 20X1 at an exercise price of $10. The FMV of each stock is $50 on January 1, 20X1, and rises to $70 on January 1, 20X3, and then reaches $100 on January 1, 20X6 before dropping to $80 on January 1, 20X7. Assuming Ben made a timely Sec. 83(i) election and the stock becomes readily tradeable on January 1, 20X3, when does Bob have income and how much? [Assume he has yet to sell the stock.]