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On January 21, 2020, Mason exercised an incentive stock option (ISO) granted to him by his employer. His option enabled him to purchase 1,000 shares

On January 21, 2020, Mason exercised an incentive stock option (ISO) granted to him by his employer. His option enabled him to purchase 1,000 shares of stock for $15 per share. When he exercised his option, the stock was trading at $20 per share. He sold the stock at a gain six months later, when the stock was trading at $25 per share. As a result of this transaction, how much does Mason report on his 2020 return as short-term capital gain income?

$0

$5,000

$10,000

$15,000

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