Frank is a lawyer who works for GT Law Firm in Dallas, Texas. Frank lives in Frisco, Texas which is 25 miles from his office in Dallas. Frank does not like Frisco and decides it would be best to move to Stephenville, Texas and commute the 109 miles to the firm in Dallas. Frank incurs $2,500 of moving expenses. After moving to Stephenville, the partners in the law firm take notice of Frank’s dedication and give him 100 stock options as part of his compensation. The value of the firm’s stock is $100 per share and the option exercise price is $105. Two years after receiving the options, Frank exercises the options when the stock price is $125 per share. Three years after that, Frank sells the stock for $120 per share and then leaves the firm to start his own firm. How much (if any) of a deduction for moving expenses is Frank entitled to? What are the tax consequences of the transactions related to the stock options?