On May 5,2015,Elton Corporation Granted Germaine an Option to Acquire

On May 5,2015,Elton Corporation granted Germaine an option to acquire 100 shares of the company's stock for $8 per share.The fair market price of the stock on the date of grant was $14.The stock requires that Germaine remain with the company for one year after the date of exercise.The option did not have a readily ascertainable fair market value.Germaine exercises the option on June 12,2016,when the fair market value of the stock is $18.On June 12,2017,the fair market value of the stock is $21 per share.How much must he report as income in 2016 and 2017?
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2016 2017

A) $1,000 $300
B) $1,000 $-0-
C) $ 400 $-0-
D) $-0- $1,300