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Question 6 has two parts - You are an employee of a Canadian public corporation. On February 1, 2019 you received options to purchase

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Question 6 has two parts - You are an employee of a Canadian public corporation. On February 1, 2019 you received options to purchase 5,000 shares of your employer's common stock at a price of $75 per share. You exercised the options and purchased 5,000 shares on March 1, 2019. You sold all of the shares on June 1, 2020. The market price of her employer's common stock was $74 per share on February 1, 2019; $79 per share on March 1, 2019 and $85 per share on June 1, 2020. Hint: Net Income is Division B and Taxable Income is Division C. Part one-(2 marks - show calculations) The effect on your 2019 tax return is: A) increase in Net Income for Tax Purposes of $12,500; increase in Taxable Income of $12,500. B) Increase in Net Income for Tax Purposes of $25,000; increase in Taxable Income of $12,500. C) increase in Net Income for Tax Purposes of $10,000, increase in Taxable Income of $10,000. D) increase in Net Income for Tax Purposes of $20,000; increase in Taxable Income of $10,000. Part two (2 marks - show calculations)The effect on her 2020 tax return is: - A) increase in Net Income for Tax Purposes of $15,000; increase in Taxable Income of $15,000. B) increase in Net Income for Tax Purposes of $30,000; increase in Taxable Income of $15,000. C) increase in Net Income for Tax Purposes of $25,000; increase in Taxable Income of $25,000. D) increase in Net Income for Tax Purposes of $50,000; increase in Taxable Income of

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