Omer is part of the management team of a Canadian public company and is eligible for the employee stock option plan. A few years ago he received an option on 1,000 shares. The current price of the share is $35, and he is optimistic that it will go up. The option requires him to pay the option price of $30 (the value at the time the option was granted) for the shares at the time he exercises his option. He plans to sell these shares hen they reach $45. He has asked you to tell him the amount of income he will have to report and when he must report as a result of exercising the option and buying the shares for $30.