The Questions Below Are Based on the Following Information

The questions below are based on the following information:
Mr. Morra commenced employment with Peoples Bank Ltd., a public corporation, on January 1, 2018. On December 31, 2018, he was granted options to purchase 500 shares of Peoples Bank Ltd. stock for $15 per share. The market value on December 31, 2018 was $16 per share.
Mr. Morra exercised his options on May 31, 2019, purchasing 500 shares for $15 per share when the market value was $17 per share. On September 1, 2020, Mr. Morra sold the shares for $24 each.
-What is the effect of the above transactions on Mr. Morra's Taxable Income in 2020?

A) Nil.
B) An increase of $1,750.
C) An increase of $2,750.
D) An increase of $3,500.