Ruby Corporation grants stock options to Iris on February 1, 2018. The options do not have a readily ascertainable value. The option price is $100. and the FMV of the Ruby stock is also $100 on the grant date. The option allows Iris to purchase 200 shares of Ruby stock. Iris exercises the option on August 1, 2020, when the stock's FMV is $150. Iris sells the stock on December 5, 2021 for $400 per share. Determine the amount and character (i.e., ordinary, LTCG or STCG and ignore AMT Preferences) of income recognized by Iris and the deduction allowed Ruby Corporation in 2018, 2020 and 2021 under the following assumptions: a. The stock option is a qualified stock option. Iris's Income 2018 option grant 2020 option exercise 2021 stock sale (None/Ordinary/STCG/LTCG) Ruby's Deduction 1