Mr$.$ John Savage has been employed for many years by a Canadian public

company. Several years ago, Mr$.$ Savage was granted options to acquire $4,000$

shares of his employer for $$54$ per share. At this time, the fair market value

$($FMV$)$ of the shares was $$50$ per share. On July $15,2022,$ Mr$.$ Savage exercises

all of these options. At this time, the FMV of the shares is $$82$ per share. In

February, $2023,$ he sells all of the shares for $$97$ per share. Calculate the effect

of these transactions that took place during $2022$ and $2023$ on Mr$.$ Savage's net

income and taxable income. Where relevant, identify the effects separately.