Question: When Fred joined CanPubCo in 2018, CanPubCo granted Fred a stock option to purchase 1,000 of its common shares at $16 per share. At the

When Fred joined CanPubCo in 2018, CanPubCo granted Fred a stock option to purchase 1,000 of its common shares at $16 per share. At the time the option was granted, CanPubCo’s shares were trading at $15 per share. On March 1, 2020, Fred exercised his option and purchased 1,000 shares of CanPubCo. (FMV of CanPubCo shares on March 1, 2020 was $22 per share). On October 31, 2020, he sold all of the shares at $24. What amounts will he include in calculating his taxable income for 2020? Show your calculations below.

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