In 2020, a public Canadian corporation grants an employee an option to purchase 5,000 shares for $75 a share when the shares were trading for $74. The employee exercises the option in 2020 when the shares were trading for $79 a share. In 2021, all the shares were sold when they were trading for $85 a share. What is the impact on 2020 Division B (Net Income) and Division C (Taxable Income)? 12,500 increase in Division B and Division C 25,000 increase in Division B and 12,500 increase in Division C 10,000 increase in Division B and Division C 20,000 increase in Division B and 10,000 increase in Division C

In 2020, a public Canadian corporation grants an employee an option to purchase 5,000 shares for $75 a share when the shares were trading for $74. The employee exercises the option in 2020 when the shares were trading for $79 a share. In 2021, all the shares were sold when they were trading for $85 a share. What is the impact on 2020 Division B (Net Income) and Division C (Taxable Income)? 12,500 increase in Division B and Division C 25,000 increase in Division B and 12,500 increase in Division C 10,000 increase in Division B and Division C 20,000 increase in Division B and 10,000 increase in Division C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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