Find the income tax impact

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Question - You have worked at a Canadian controlled private corporation for 5 years. Three years ago, your employer granted you options to acquire 4,000 shares for $54 per share when the shares had a fair value of $40 per share. In February 2019, you exercise all of the options when the fair value of $82 a share. In May 2020, you sell the 4,000 shares for $97 a share. Find the income tax impact for you in 2019 and 2020? Document calculations of Net Income (Division B) and Taxable Income (Division C) for both 2019 and 2020.

Reference no: EM132828065

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