Malenkov Mfg. Ltd. granted Ms. Yampolsky, its vice-president, an option to purchase 10,000 shares for $5 per share. On March 10, 2016, she acquired the 10,000 shares under the option. The following pertains to the shares:

REQUIRED
(A) Determine the tax consequences on the above dates if Malenkov Mfg. Ltd. was:
(i) A public company, or
(ii) A CCPC.
(B) Redo Part (A) assuming the exercise price had been set at $10 per share.

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Option granted Option exercised Shares to be sold Date March 10, 2010 March 10, 2016 March 10, 2019 FMV $10 20 30