income tax return Exam Exercise Three - 19 (Stock Options - CCPC) Note this is the same

income tax return

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Exam Exercise Three - 19 (Stock Options - CCPC) Note this is the same as Exam Exercise Three-18 except that the employer is a CCPC. Mr. John Savage has been employed for many years by a Canadian controlled private corporation. Several years ago, Mr. Savage was granted options to acquire 4,000 shares of his employer's stock for $54 per share. At this time, the shares have a fair market value of $50 per share. On July 15, 2018, Mr. Savage exercises all of these options. At this time, the fair market value of the shares is $82 per share. In February, 2019, he sells all of the shares for $97 per share. Calculate the effect of the transactions that took place during 2018 and 2019 on Mr. Savage's Net Income For Tax Purposes and Taxable Income. Where relevant, identify these effects separately. Exam Exercise Three - 19 (Stock Options - CCPC) Note this is the same as Exam Exercise Three-18 except that the employer is a CCPC. Mr. John Savage has been employed for many years by a Canadian controlled private corporation. Several years ago, Mr. Savage was granted options to acquire 4,000 shares of his employer's stock for $54 per share. At this time, the shares have a fair market value of $50 per share. On July 15, 2018, Mr. Savage exercises all of these options. At this time, the fair market value of the shares is $82 per share. In February, 2019, he sells all of the shares for $97 per share. Calculate the effect of the transactions that took place during 2018 and 2019 on Mr. Savage's Net Income For Tax Purposes and Taxable Income. Where relevant, identify these effects separately.

Answer rating: 100% (QA)

The tax implications of the stock options transactions for Mr Savage are as follows 1 Exerci... View the full answer