Marguerite received nonqualified stock options (NQSOs) with an exercise price equal to the FMV at the date of the grant of $22. Marguerite exercises the options 3 years after the grant date when the FMV of the stock was $30. Marguerite then sells the stock 3 years after exercising for $35. Which of the following statements is (are) true?

1. At the date of the grant, Marguerite will have ordinary income of $22.
2. At the date of exercise, Marguerite will have W-2 income of $8.
3. At the date of sale, Marguerite will have long term capital gain of $5.
4. Marguerite's employer will have a deductible expense in relation to this option of $22.