Ms. Mary Mason is employed by a Canadian controlled private corporation. In 2018, she was granted options to acquire 1,000 shares of her employer's common stock at a price of $23 per share. At the time the options were granted, the shares had a fair market value of $20 per share. In May, 2020, when the shares had a fair market value of $45 per share, she exercises her options and acquires 1,000 shares. What is the effect of the exercise of the options on Ms. Mason's 2020 net employment income?

Question

Quizplus · Accepted Answer

The Answer of Ms. Mary Mason is employed by a Canadian controlled private corporation. In 2018, she was granted options to acquire 1,000 shares of her employer's common stock at a price of $23 per share. At the time the options were granted, the shares had a fair market value of $20 per share. In May, 2020, when the shares had a fair market value of $45 per share, she exercises her options and acquires 1,000 shares. What is the effect of the exercise of the options on Ms. Mason's 2020 net employment income?

Ms Mary Mason Is Employed by a Canadian Controlled Private