Pasqual Melo is employed by a public corporation. On January 1, 2019, she was given an option to purchase 1,100 shares of the public corporation for $8 per share (the option extended for two years). On December 15, 2019, she exercised her option and bought 1,100 shares at $8 per share (total $8,800). On June 15, 2022, she sold the 1,100 shares. The value of the shares at the particular dates was as follows: Required: Date option granted Date option exercised Date shares sold $8.50 916 11 16 Determine the amount and type of income and when that income is taxable. Year FMV of shares on exercise date Cost of shares acquired on exercise date Employment Income Stock option deduction Taxable Income When the shares are sold Proceeds from Sale ACB of shares Amount Capital Gain Taxable capital gain Determine the amount and type of income and when that income is taxable if the value of the shares at the date the option was granted was $8 rather than $8.50? FMV of shares on exercise date