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Problem 1: Determine Taylor's net income for tax purposes for the year ended December 31,2020.
1. Taylor work for an large Canadian Public Company. His total net employment income is $ 161,000. Included in this amount is the stock option benefit of $ 6,000. He was granted $2,000 options in January 2020 at an option price go $20. At the time the options were granted, the shares were trading at $18/share. When Taylor exercised all his options in July 2020 the shares were trading at $23/share.
2. Taylor paid $410/month in child support, and $620/month in spousal support. All payments were made in full in 2020.
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