Floretta Sutphin has worked for several years as an employee of a Canadian public company that has annual gross revenues of $190 million.In September 2021, Floretta was granted options to acquire 2,000of the company's shares at a price of $19 per share.She is able to exercise the shares immediately. At that time, the shares were trading at $17 per share.

In February 2022, with the shares trading at $27 per share, Floretta exercised 1,000 of the options. During the remainder of that year, the shares continued to increase in value, reaching a value of $32 per share in December 2022.

At that time, Floretta exercised the remaining 1,000 options. In the second quarter of 2023, reflecting poor earnings results during the first quarter of the year, the value of the shares declines to $30 per share.At this point, Floretta sells all 2,000 of her shares at this price.

Required:

A. Indicate the income tax effect of the transactions that took place during each of the years 2021, 2022, and 2023. Your answer should include the effect on both net income and taxable income. Where relevant, identify these effects separately.

B. How would your answer change if the shares had been trading at $22 per share at the time the options were granted in 2021?

C. How would your answers to both Part A and Part B change if Floretta's employer was a Canadian-controlled private corporation (CCPC)? In all three parts comment on whether the stock option deduction restrictions.

Please provide calculations and detailed explanations for the answers to each question.