On December 1 of the current year, Ms. Wong purchases 2,000 shares of Red Dog Ltd. under a stock option plan. Black Angus Ltd. is a public corporation. Ms. Wong provides you with the following information:

·        bullet Stock Option granted on June 1 of the prior year and Fair Market Value (FMV) at the "grant" date = $6/share

·        bullet Option price, offered to employees = $6/share

·        bullet Stock Option exercised on Nov. 1 of the current year and FMV at the "exercise" date = $10/share

On December 31 of the current year, Ms. Wong continues to own the 2,000 shares of Red Dog Ltd. The FMV of the shares on December 31 is $16 per share and Ms. Wong anticipates the share value will continue to increase. What is taxable employment benefit arising from the stock option for Ms. Wong in the current year?

Answer rating: 100% (QA)

To calculate the taxable employment benefit arising from the stock option for Ms Wong we need t... View the full answer