22 27 28 23 QUESTION 1: (PART 1) 24 Joan Smithers has been employed by a Canadian public company for several years 2008 25 options to acquire 2.200 of her employer's shares a $10.50 per home. At that there were 26 $10.00 per share. In 2020, when the shares are trading 515 per share of these she sells 1,000 of the shares for S13 per share. Indicate the income tax of the events in 2019, 2020, and 2021 on Ms. Smitherynet and taxable income where the te separately. 30 31 Answer: the exercise of the options in 2020 will have the following in the 34 FMV at exercise Cost or Shares 36 Employment income (Increase in net income) 32 Stock option deduction 38 Indrase in taxable income ass 32 35 39 ta When the shares are sold in 2021, the income tax cu fem 41 42 POD 40 ACB * Capital Loss 15 Inclusion Rate 16 Allowable Capital Loss 2 8