Cleo Mow is employed by ABC Inc., a public corporation. Cleo's employment income for 2021 includes 1) a $90,000 salary, 2) a cash bonus of $8,000 announced on December 3^rd to be paid to Cleo on January 10, 2022, 3) RPP contributions made by both Cleo and ABC, 4) a stock option (granted at $4 per share when the FMV was $3) exercised during the year when the FMV was $5 per share, and 5) a $25 meal allowance every week due to the three hours of overtime that was required to work each Wednesday immediately following eight hours of regular work. Which of the following is correct?

Multiple Choice

• The cash bonus was declared in 2021 and is therefore taxable in 2021.

• Cleo's meal allowance is a non-taxable benefit.

• The stock option was granted at a price greater than the fair market value and is therefore not taxable until sold.

• Cleo will have a $4,000 RPP deduction from employment income.