Wendy is permitted to purchase Chemical Ltd. products for her personal use at 20% discount from selling price. During the Year, she purchased $1000(at the selling price before discount) of products for her sister. 

Should this part be included in employment income of Wendy?why?

What is the effect of an option on Wendy's taxable income if the FMV of shares($40) is greater than the option value($35) on the date of grant? Why?

Answer rating: 100% (QA)

The 1000 worth of products that Wendy purchased for her sister at the selling price before discount may be considered a taxable employment benefit and ... View the full answer