You are employed by a CCPC that granted you options to purchase 500 shares of their stock for $22 a share when the value of the shares was estimated to be $20.50. This year you exercise the option and purchase 500 shares when the value is $31.50 a share. Then you sell the shares for $38.75 a share. 

What is the impact on Division C (Taxable Income)?

Answer rating: 100% (QA)

When you exercise the option and purchase the 500 shares for 22 per share there is no immediate impa... View the full answer