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(Employee Stock Options) All of the long term employees of Salter Inc. are allowed to participate in the company's stock option plan. In January 2018,

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(Employee Stock Options) All of the long term employees of Salter Inc. are allowed to participate in the company's stock option plan. In January 2018, Sharon Poulter was granted options to acquire 410 Salter Inc. shares at a price of $32.00 per share. At the time of exercise, the Salter Inc. shares have a fair market value of $3780 per share. On November 15, 2020, the 410 Salter Inc. shares are sold. Required: Indicate the tax effect on Sharon of the transactions that took place during 2018, 2019, and 2020 under each of the following independent Cases. Your answer should include the effect on both Net Income For Tax Purposes and Taxable income. Where relevant, identify these effects separately Case 1 Salter Inc. is a Canadian controlled private company. At the time the options were granted, the company's shares had a fair market value of $31.00 per share. The options are exercised on July 1, 2019. When the shares are sold, the proceeds of disposition are $45.80 per share, Case 2 Salter Inc. is a Canadian controlled private company. At the time the options were granted, the company's shares had a fair market value of $34.00 per share. The options are exercised on February 28, 2018. When the shares are sold, the proceeds of disposition are $43.20 per share, Case 3 Salter Inc. is a Canadian public company. At the time the options were granted, the company's shares were trading at $31.00 per share. The options are exercised on July 1, 2019. When the shares are sold, the proceeds of disposition are $42.10 per share. Case 4 Salter Inc. is a Canadian public company. At the time the options were granted, the company's shares were trading at $34.00 per share. The options are exercised on February 28, 2019. When the shares are sold, the proceeds of disposition are $31.00 per share

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