Mr. Morra commenced employment with Peoples Bank Ltd., a public corporation, on January 1, 2015.On December 31, 2015, he was granted options to purchase 500 shares of Peoples Bank Ltd. stock for $15 per share.The market value on December 31, 2015 was $16 per share.

Mr. Morra exercised his options on May 31, 2016, purchasing 500 shares for $15 per share when the market value was $17 per share.On September 1, 2017, Mr. Morra sold the shares for $24 each.

What is the effect of the above transactions on Mr. Morra's Taxable Income in 2016?

Question 2 options:

Nil.

An increase of $250

An increase of $500.

An increase of $1,000.