3. On January 15, 2015, Mr. Brooks received options to buy 200 shares of his employer's common stock at a price of $23 per share. At this time, the shares were trading at $20 per share. Mr. Brooks exercised these options on July 6, 2016, when the shares were trading at $28 per share. He does not plan to sell the shares for at least a year. 4. In order to assist Mr. Brooks in acquiring a new personal residence in Winnipeg, his employer granted him a ve year, interest free loan of $125,000. The loan qualies as a home relocation loan. The loan was granted on October 1, 2016 and, at this point in time, the interest rate on open ve year mortgages was 5 percent. Assume the prescribed rate was 2 percent on this date and remained unchanged during the year. Mr. Brooks purchases a house for $235,000 on October 2, 2016. He has not owned a home during any of the preceding four years