Several years ago, Rustin retired from Fox, Inc., a national plastics supplier. When Rustin retired, he had 1,000 shares of Fox, Inc. stock in his stock bonus plan. Fox, Inc. took deductions equal to $20 per share for the contributions made on Rustins behalf. At retirement, Rustin took a lump-sum distribution of the employer stock. The fair market value of the stock at distribution was $35 per share. On July 15th of this year, Rustin sold the stock for $40 per share. Which of the following will Rustin report on his tax return at the date he sells the Fox, Inc. stock? Explain your answers.