8. One of your February Friends" has approached you for some free tax advice as you have recently posted on your social media account that you recently completed your Tax 1 course and "aced" it. This friend, Phil Freeloader has been working for the past 10 years at a local publicly traded company. In past years Phil has handed over all his tax papers to a local bookkeeper who has since suddenly left the country will all of Phil's paperwork in regard to his tax returns for the past 10 years. Phil is looking for some advice in relation to stock options he was issued early in his career and the details are as follows. During his first year of employment due to some great suggestions that Phil made to the company, the company granted to Phil an option to purchase up to 4,000 shares at $26 each after completion of his 4th year of employment. The fair market value of the common shares at the time of granting the option was $20 per share. Phil has no other shares. In Phil's 5th year of employment with the shares having a fair market value of $30 each he decides to use part of his options to purchase 2,000 shares. It is now in the 10th year of Phil's employment and the shares are currently trading at $50 per share and he is considering selling his 2,000 shares depending on what advice you have for him. Required: 6 Marks Explain to Phil the tax implications of these stock options to guide him in his decision in regard to taxation 8. One of your February Friends" has approached you for some free tax advice as you have recently posted on your social media account that you recently completed your Tax 1 course and "aced" it. This friend, Phil Freeloader has been working for the past 10 years at a local publicly traded company. In past years Phil has handed over all his tax papers to a local bookkeeper who has since suddenly left the country will all of Phil's paperwork in regard to his tax returns for the past 10 years. Phil is looking for some advice in relation to stock options he was issued early in his career and the details are as follows. During his first year of employment due to some great suggestions that Phil made to the company, the company granted to Phil an option to purchase up to 4,000 shares at $26 each after completion of his 4th year of employment. The fair market value of the common shares at the time of granting the option was $20 per share. Phil has no other shares. In Phil's 5th year of employment with the shares having a fair market value of $30 each he decides to use part of his options to purchase 2,000 shares. It is now in the 10th year of Phil's employment and the shares are currently trading at $50 per share and he is considering selling his 2,000 shares depending on what advice you have for him. Required: 6 Marks Explain to Phil the tax implications of these stock options to guide him in his decision in regard to taxation