20, 12:50 A Test - Intermediate Employee Stock Options (2019) Section 3 Question 8 of 15. On January 15, 2018, Sebastian exercised an incentive stock option (ISO) granted to him by his employer. His option enabled him to purchase 1,000 shares of stock for $10 per share. When he exercised his option, the stock was trading at $15 per share. He sold the stock at a gain six months later, when the stock was trading at $22 per share. How much does Sebastian report as ordinary income from compensation as a result of this transaction? $0 $5,000 $7,000 $10,000 Mark for follow up Son 9 of 15. the response that best describes the amount and type of income recoanized whanh an employee stock purchase plan EN