8 9 10 11 12 13 14 15 16 TO 95 17 18 12 PET 9 5 17 3 2 1 0 1 2 m 4 6 7 L 6 FMV grant > Optentrice - $10 Mr. Dietrich, who is employed by Public Co. Ltd., was granted an option in year one to purchase up to 5,000 common shares at $10 after completion of his fifth year of employment. The FMV of the common shares at the time of granting the right was $12. He does not have any other shares. During Mr. Dietrich's seventh year of employment, he decided to exercise part of his right and purchased 1,000 shares with a FMV of $15 as at that = 5000 date. (15-10) (1000) Three years later, Mr. Dietrich sold the shares for $25 per share. CAP GAIN = What are the tax implications of each of the above transactions? Okay, here's an example We're dealing with mi- Stock Options: Example 1 empl (25-$15 (1000) =$10,00 Income Dealuction 8 b PART 3B 90004 : NITPT $10,000 Sooo