Javier is a vice-president of Pan American Airlines, a publicly held corporation traded on the New York Stock Exchange. In June of last year, Javier was granted, as a bonus, an option to purchase 5,000 shares of stock in Pan American for $10 per share. At the time the option was granted, Pan American was trading at $10 per share. Similar options to buy Pan American at $10 per share had recently sold privately for $2, but such options were not traded on an established market. Javier's option was, by its express terms, nontransferable. This November, Javier exercised his option when Pan American was selling for $40 a share. One week later, he sold for $50 per share 1000 shares of the Pan American stock that he had just purchased. What are the tax consequences of these events for Javier?