uestion 16 (3 points) Saved When she started working for ABC Inc., ABC Inc. granted M a non-qualified stock option to purchase 100 shares of ABC Inc. stock for $7 per share. The option vested immediately, that is, she could exercise the options anytime while employed at ABC Inc. When the share price was $17 per share, she exercised her option and acquired 100 shares. Eighteen months after she exercised the options and acquired the share, she sold all 100 shares for $20 per share. How much gain did M recognize on the sale and how much tax did she pay on the sale assuming her marginal tax rate on ordinary income was 37 percent (and 20% on long-term capital gains)? a. $1,300 gain and $260 tax. b. $1,300 gain and $481 tax. c. $300 gain and $60 tax. d. $300 gain and $111 tax.