Audit research

please add tax law rules and section code.

Tax Case 2: Stock Purchased by an Employee (Intermediate) Stacey became an employee of DotGismo, Inc., a privately held firm. On December 15, 20X3, Stacey was allowed to buy 20,000 shares of DotGismo stock for $40,000 dollars. At that time when Stacey bought the stock, each share was worth $2. DotGismo retains the right to repurchase each share for $2 original purchase price if Stacey leaves DotGismo at any time during the next two years for any reason. DotGismo stock increased to $5 per share in December 15, 20X5, when the two-year restriction ended. Stacey sold the stock on January 18, 20X6 for $9 per share, after the announcement of a new patent for DotGismo, Advise Stacey roughly how much tax must be paid and for what year(s). Assume Stacey is in the 35% tax bracket for ordinary income and 15% for long term capital gains