What is the effect of the above on Brian income

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Question - Scott Bicycle Manufacturing Ltd. is a CCPC. Brian Mills, one of the employees, was granted a stock option on October 11, 2011 for 10,000 shares at $3 per share. Brian exercised the stock option on September 30, 2014 when the market price was $6 per share. In February 2019, Brian purchased a new home and sold the shares for $7 each. The fair market value on October 11, 2011 was $4. What is the effect of the above on Brian's income for tax purposes, assuming Brian wants to minimize taxes?

1. $15,000 in 2014

2. $15,000 in 2019

3. $30,000 in 2014

4. $35,000 in 2019

Reference no: EM132612570

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