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What is the effect of the above on brians 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, 20X1 for 10,000 shares at $3 per share when market value was $4 per share. Brian exercised the stock option on September 30, 20X4 when the market price was $6 per share. In February 20X9, Brian purchased a new home and sold the shares for $7 each.

What is the effect of the above on Brian's income for tax purposes, assuming Brian wants to minimize taxes?

Reference no: EM132405121

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