dOpting Inc. has a very generous stock option plan that allows all of their long term employees to

participate. Sandra has worked for the Company for over $10$ years and has participated in this plan on a

regular basis. With regards to the last options granted to her, the following information is relevant:

$$ On January $1,2021,$ Sandra was granted options to acquire $275$ of the Company's shares at a price of

$$15\mathrm{.}00$ per share.

$$ At a later point in time, when Sandra exercises these options, the Company's shares have a FMV of

$$17\mathrm{.}50$ per share.

$$ On December $1,2023,$ all of the shares acquired with the options are sold.

Required: Indicate the income tax consequences to Sandra of the transactions that took place during $2021,$

$2022,$ and $2023$ under each of the following independent Cases. Your answer should include the effect on

employment income, net income and taxable income. Where relevant, identify these effects separately.

Case A $$ Opting is a CCPC$.$ At the time the options were granted, the FMV of the Company's shares was

$$16\mathrm{.}00$ per share. The options are exercised on February $28,2021.$ When the shares are sold, the proceeds

of disposition are $$20\mathrm{.}25$ per share.

Case B $$ Opting is a Canadian public company. At the time the options were granted, the Company's

shares were trading at $$16\mathrm{.}00$ per share. The options are exercised on February $28,2021.$ When the shares

are sold, the proceeds of disposition are $$16\mathrm{.}00$ per share.

Case C $$ Opting is a Canadian public company. At the time the options were granted, the Company's

shares were trading at $$14\mathrm{.}00$ per share. The options are exercised on July $1,2022.$ When the shares are

sold, the proceeds of disposition are $$19\mathrm{.}75$ per share.

Case D $$ Opting is a CCPC$.$ At the time the options were granted, the Company's shares had a FMV of

$$14\mathrm{.}00$ per share. The options are exercised on July $1,2022.$ When the shares are sold, the proceeds of

disposition are $$21\mathrm{.}50$ per shareOpting Inc. has a very generous stock option plan that allows all of their long term employees to

participate. Sandra has worked for the Company for over $10$ years and has participated in this plan on a

regular basis. With regards to the last options granted to her, the following information is relevant:

$$ On January $1,2021,$ Sandra was granted options to acquire $275$ of the Company's shares at a price of

$$15\mathrm{.}00$ per share.

$$ At a later point in time, when Sandra exercises these options, the Company's shares have a FMV of

$$17\mathrm{.}50$ per share.

$$ On December $1,2023,$ all of the shares acquired with the options are sold.

Required: Indicate the income tax consequences to Sandra of the transactions that took place during $2021,$

$2022,$ and $2023$ under each of the following independent Cases. Your answer should include the effect on

employment income, net income and taxable income. Where relevant, identify these effects separately.

Case A $$ Opting is a CCPC$.$ At the time the options were granted, the FMV of the Company's shares was

$$16\mathrm{.}00$ per share. The options are exercised on February $28,2021.$ When the shares are sold, the proceeds

of disposition are $$20\mathrm{.}25$ per share.

Case B $$ Opting is a Canadian public company. At the time the options were granted, the Company's

shares were trading at $$16\mathrm{.}00$ per share. The options are exercised on February $28,2021.$ When the shares

are sold, the proceeds of disposition are $$16\mathrm{.}00$ per share.

Case C $$ Opting is a Canadian public company. At the time the options were granted, the Company's

shares were trading at $$14\mathrm{.}00$ per share. The options are exercised on July $1,2022.$ When the shares are

sold, the proceeds of disposition are $$19\mathrm{.}75$ per share.

Case D $$ Opting is a CCPC$.$ At the time the options were granted, the Company's shares had a FMV of

$$14\mathrm{.}00$ per share. The options are exercised on July $1,2022.$ When the shares are sold, the proceeds of

disposition are $$21\mathrm{.}50$ per share