Andrea was granted 50 ISOs. Each ISO allows her to purchase 100 shares of stock at $5 per share. She exercised all the options after the three year vesting date when the market value of the stock was $25 per share. She held the stock for 13 months and then sold all of it for $20 a share. From a tax standpoint, what does she have on the sale date and what did her employer get on that date?

		She has a $75,000 STCG; her employer has a $75,000 tax deduction.
		She has a $100,000 LTCG; her employer gets a $100,000 tax deduction
		She has $75,000 LTCG; her employer gets nothing
		She has $125,000 LTCG; her employer gets nothing