Wilson Corporation granted an incentive stock option to Reva on January 1, 2018. The option price was $300, and the FMV of the Wilson stock was also $300 on the grant date. The option allowed Reva to purchase 150 shares of Wilson stock. Reva exercised the option on August 1, 2020, when the stock's FMV was $400. Reva sells the stock on December 5, 2021 for $450 per share. Determine the amount and character(i.e., ordinary, LTCG or STCG) of income recognized by Iris and the deduction allowed Ruby Corporation in 2017, 2019 and 2020 under the following assumptions:

a. The stock option is an incentive stock option. Reva's Income (Ordinary/STCG/LTCG) Wilson's Deduction 2018 option grant 2020 option exercise 2021 stock sale b. The stock option is a nonqualified stock option. Reva's Income (Ordinary/STCG/LTCG) Wilson's Deduction 2018 option grant 2020 option exercise 2021 stock sale