The questions below are based on the following information:

Parminder is an employee of a public Canadian corporation. On April 1, 2021 she was granted stock options to purchase 5,000 shares of her employer's common shares at a price of $75 per share. She exercised her options and purchased 5,000 shares on November 1, 2021. She sold all of her shares on February 1, 2022. The market price of her employer's common shares was $74 per share on April 1, 2021; $79 per share on November 1, 2021 and $85 per share on February 1, 2022.

The effect on her 2022 net and taxable income is:

a.

increase in net and taxable income of $25,000.

b.

increase in net and taxable income of $15,000.

c.

increase in net income of $30,000 and an increase in taxable income of $15,000.

d.

increase in net income of $50,000 and an increase in taxable income of $25,000.