URGENT

Sarah Guccini has been employed for many years by a Canadian public company. Several years ago, Sarah was granted options to acquire 4,000 shares of her employers stock for $54 per share. At this time, the shares have a fair market value of $56 per share. On July 15, 2020, Sarah exercises all of these options when the fair market value of the shares is $82 per share. In February 2021, she sells all of the shares for $97 per share.

Required: (Show your calculations step by step)

1. Calculate the effect of the transactions that took place during 2020 and 2021 on Sarahs Net Income For Tax Purposes and Taxable Income. Where relevant, identify these effects separately. (2 marks)
2. How would your answer change if the value of the shares at the date the option was granted was $50 rather than $56? (2 marks)
3. How would your answer in 2 above change if the employer were a Canadian-controlled private corporation (CCPC)? (1 mark)