On December 15, 2019, she exercised her option and bought 1,300 shares at $8 per share (total = $10,400).

On June 15, 2022, she sold 1,300 shares. The value of the shares at the particular dates was as follows:

Date option granted	$ 8.50
Date option exercised	13
Date shares sold	20

Required:

 
 

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Determine the amount and type of income and when that income is taxable. Year Amount FMV of shares on exercise date Cost of shares acquired on exercise date Employment Income Stock option deduction Taxable Income When the shares are sold Proceeds from Sale ACB of shares Capital Gain Taxable capital gain Determine the amount and type of income and when that income is taxable if the value of the shares at the date the option was granted was $8 rather than $8.50? 2019 FMV of shares on exercise date Cost of shares acquired on exercise date Employment Income Stock option deduction Taxable Income When the shares are sold Proceeds from Sale ACB of shares Capital Gain Taxable capital gain Determine the amount and type of income and when that income is taxable. Year Amount FMV of shares on exercise date Cost of shares acquired on exercise date Employment Income Stock option deduction Taxable Income When the shares are sold Proceeds from Sale ACB of shares Capital Gain Taxable capital gain Determine the amount and type of income and when that income is taxable if the value of the shares at the date the option was granted was $8 rather than $8.50? 2019 FMV of shares on exercise date Cost of shares acquired on exercise date Employment Income Stock option deduction Taxable Income When the shares are sold Proceeds from Sale ACB of shares Capital Gain Taxable capital gain

Answer rating: 100% (QA)

1 Year Amount Working 2019 FMV of Shares on Exercise Date 16900 131300 Cost of Shares on E... View the full answer