Startup Inc. granted Jennifer 10,000 nonqualified stock options (NQOs) on January 1, 2017. The options vest on January 1, 2020. The exercise price is $20 per share. On January 1, 2020, Jennifer exercises all 10,000 options when the price is $25 per share. She holds the stock for two years and sells all 10,000 shares for $28 per share.

• What is the amount of Jennifers taxable income from the options on the grant date?
• What is the character of Jennifers taxable income from the options on the grant date? Write either Ordinary, Long-term Capital Gain, or Not Applicable (if Jennifer does not recognize income from the options on the grant date).
• What is the amount of Jennifers taxable income from the options on the exercise date?
• What is the character of Jennifers taxable income from the options on the exercise date? Write either Ordinary, Long-term Capital Gain, or Not Applicable (if Jennifer does not recognize income from the options on the exercise date).
• What is the amount of Jennifers taxable income from the options on the date of sale?
• What is the character of Jennifers taxable income from the options on the date of sale? Write either Ordinary, Long-term Capital Gain, or Not applicable (if Jennifer does not recognize income from the options on the date of sale).