Henry pays 15% taxes on dividends and capital gains and 35% taxes on ordinary income. Five years ago, Henry purchased 100 shares of ABC, Inc. for $42 a share. Three months ago, Henry wrote a call option on the shares with an exercise price of $55 a share and received $1,000 for the contract. Yesterday, when the market price of the stock was $70, the call buyer exercised his option to purchase the shares from Henry. Ignoring commissions, what would Henry's taxes on this transaction be?
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