During the Current Year, Corporation J Granted a Non-Qualified Stock

During the current year, Corporation J granted a non-qualified stock option to Employee E.The option allowed E to buy 1,000 shares of J stock for $100 per share at any time during the next four years.At the date of the grant, the market price of E stock was $110 per share, and thus, the option's value was $10,000.Two years after the option was granted, E exercised the option when the market price of E stock was $160 per share.Based on these facts, E should report

A) No income until he sells the 1,000 shares of E stock
B) $10,000 of ordinary income in the current year, but no income in the year the option is exercised
C) $10,000 of ordinary income in the current year, and $50,000 of ordinary income in the year the option is exercised
D) No income in the current year and $60,000 of ordinary income in the year the option is exercised