Question: Michelle, an executive at a public U . S . - based company, works and lives in Canada. Michelle exercises her 1 , 2 0

Michelle, an executive at a public U.S.-based company, works and lives in Canada.Michelle exercises her 1,200 employee stock options at $54 per share, knowing the strike price to be $53 per share. At the time she received the options, the U.S. dollar was at par with the Canadian dollar. Now the exchange rate is $1.25 CAD/US. Calculate the income before deductions that Michelle should declare for tax purposes.

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