Jims fiance Pam has some stock option and employer leased questions for you. She has some hypothetical questions for you that she would like answers to.

Pam works for a public corporation, Beskar Metals Coproration (BMC). Her stock question is.

On January 1, 2019, she was given an option to purchase 1,000 shares of BMC for $8 per share (the option extended for two years).

On December 15, 2019, she exercised her option and bought 1,000 shares at $8 per share.

On June 15, 2022, Pam sold the 1,000 shares.

The value of the shares at the particular dates was as follows: Date option granted	$ 8.50
Date option exercised	$10.00
Date shares sold	$14.00

Required:

1. Determine and present the amount and type of income from these transactions and in which year that income is taxable based on the above ?

2. Determine and present the amount and type of income from these transactions and in which year that income is taxable if the value of the shares at the date the option was granted was $7.50 rather than $8.50 ?

3. Determine and present the amount and type of income from these transactions and in which year that income is taxable if BMC was a Canadian-controlled private corporation based on the following amounts.

Date option granted	$ 8.50
Date option exercised	$10.00
Date shares sold	$14.00