What is the income tax impact

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Problem - 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 was $82 a share. In May 2020, you sell the 4,000 shares for $97 a share. What is 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: EM132825157

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