Mr. John Smith has been employed for many years by a Canadian public company. Several years ago, Mr. Smith was granted options to acquire 3,000 shares of his employers stock for $24 per share. At this time, the shares have a fair market value of $20 per share. On July 15, 2019, Mr. Smith exercises all of these options. At this time, the fair market value of the shares is $32 per share. In February, 2020, he sells all of the shares for $57 per share. Calculate the effect of the transactions that took place during 2019 and 2020 on Mr. Smiths Net Income For Tax Purposes and Taxable Income. Where relevant, identify these effects separately.