The ISO should be reported in 2 places ... on the W-2 showing what you paid for the stock and on the 1099-B from the broker showing the sale. You MUST report BOTH parts or you will get an IRS letter. If the stock sale is entered correctly you should have a small loss on the Sch D in the amount of the brokers fee if this was a cashless transaction. If the broker did not report the cost basis correctly then it is up to you to do so.
