During the Current Year, Corporation P Granted an Incentive Stock

During the current year, Corporation P granted an incentive stock option (ISO) to Employee A.The option entitled A to purchase 500 shares of P stock for $150 per share.On the date the option was granted, P stock had a market value of $130 per share.Three years after the grant, A exercised the option when P stock had a market value of $190 per share.Eight months after A acquired the 500 shares, he sold them for $200 per share.Based on these facts, A should report a gain on sale of

A) $20,000 ordinary income and $5,000 capital gain
B) $25,000 capital gain
C) $25,000 ordinary income
D) $5,000 capital gain