My T. Mouse, age 47, was employed by Marvel Corporation and is covered by Marvel's ISO plan. In 2007, pursuant to the plan, Marvel granted Mr. Mouse an option to purchase Marvel stock for $35 per share. A year and a half later, when the stock was valued at $41 per share, Mr. Mouse exercised his option, purchasing 1,000 shares for $35,000. Fourteen months later he sold his stock for $45 per share.
How much is Mr. Mouse's taxable gain, compensation income, and capital gain?
Show your calculations and explain how you came up with your answer.