Mr$.$ Scott Savage has been employed for many years by a CCPC$.$ In $2019,$ Mr$.$ Savage was granted stock options to acquire $4,000$ shares of his employer for $$54$ per share. At that time, the FMV of the shares was $$50$ per share. On July $15,2022,$ Mr$.$ Savage exercises all of these options. At this time, the FMV of the shares is $$82$ per share. In February, $2023,$ he sells all of the stock option shares for $$97$ per share. Calculate the effect of the stock option share transactions that took place in $2022$ and $2023$ on Mr$.$Savage's employment income, net income and taxable income. Where relevant, identify these effects separately.

Answer rating: 100% (QA)

Impact of Stock Option Transactions on Mr Savages Income 1 Granting of Stock Options 2019 This event typically has no tax impact for Mr Savage He rece... View the full answer