In 2000, you were granted 600 ISOs by your employer with a strike price of $5/share. In 2004 when the options vested, the company's stock was trading for $7/share. In 2006, you exercised all 600 options when the stock was trading for $10/share. You sold the shares 15 months later in 2008 for $14/share. Which of the following is correct?

Group of answer choices

You would include $0 in regular taxable income when you exercise the options in 2006.

You would include $2,000 in capital gain income when you exercise the shares in 2006.

You would include $1,200 in regular taxable income when the options vest in 2004.

You would include $3,000 in regular taxable income when you exercise the options in 2006.