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On June 3, 2021, Harriet exercised an incentive stock option (ISO) granted to her by her employer. Her option enabled her to purchase 100 shares

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On June 3, 2021, Harriet exercised an incentive stock option (ISO) granted to her by her employer. Her option enabled her to purchase 100 shares of stock for $5 per share, for a total cost of $500. When she exercised her option, the stock was trading at $9 per share. She sold the stock in February of 2022 for $15 per share, for a total amount received of $1,500. What amount(s) does Harriet report on her 2022 tax return as a result of this transaction? $1,000 compensation. $600 compensation; $400 short-term capital gain. $400 compensation; $600 short-term capital gain. $1,000 short-term capital gain. Mark for follow up

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