In 2020, a public Canadian corporation grants an employee an option to purchase 5,000 shares for $75
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Question:
In 2020, a public Canadian corporation grants an employee an option to purchase 5,000 shares for $75 a share when the shares were trading for $74. The employee exercises the option in 2020 when the shares were trading for $79 a share. In 2021, all the shares were sold when they were trading for $85 a share. What is the impact on 2021 Division B (Net Income) and Division C (Taxable Income)?
Division B increase 30,000 and Division C increase 15,000 | |
15,000 increase in both Division B and Division C | |
25,000 increase in both Division B and Division C | |
Division B increase 50,000 and Division C increase 25,000 |
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
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