Sweet Sarah received 10 NQOs (each option gives her the right to purchase 20 shares of stock for $5 per share) from her employer at the time she started working when the stock price was $7 per share. Now that the share price is $20 per share, she intends to exercise all of the options. Two years later Sweet Sarah sells the stock for $22 per share, what is Sweet Sarah's basis in her stock for purposes of calculating the gain or loss? A. $1,000. B. $1,400. C. $4,000. D. $4,400.
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