Ontario Ltd. is a Canadian Controlled Private Corporation (CCPC). Mary Stewart, one of the employees, was granted a stock option on October 11, 2021 for 15,000 shares at $3 per share. Mary exercised the stock option on September 30, 2022 when the market price was $9 per share. In February 2023, Mary purchased a new home and sold the shares for $14 each. The fair market value on October 11, 2021 was $3. What is the effect of the above on Mary's taxable income, assuming Mary wants to minimize taxes?\\n\\nGroup of answer choices\\n\\n$127,500 in 2023\\n\\n$45,000 in 2023\\n\\n$45,000 in 2022\\n\\n$82,500 in 2023
Ontario Ltd. is a Canadian Controlled Private Corporation (CCPC). Mary Stewart, one of the employees, was granted a stock option on October 11, 2021 for 15,000 shares at $3 per share. Mary exercised the stock option on September 30, 2022 when the market price was $9 per share. In February 2023, Mary purchased a new home and sold the shares for $14 each. The fair market value on October 11, 2021 was $3. What is the effect of the above on Mary's taxable income, assuming Mary wants to minimize taxes?\\n\\nGroup of answer choices\\n\\n$127,500 in 2023\\n\\n$45,000 in 2023\\n\\n$45,000 in 2022\\n\\n$82,500 in 2023
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Ontario Ltd. is a Canadian Controlled Private Corporation
(CCPC). Mary Stewart, one of the employees, was
granted a stock option on October 11, 2021 for 15,000
shares at $3 per share. Mary exercised the stock option
on September 30, 2022 when the market price was $9
per share. In February 2023, Mary purchased a new
home and sold the shares for $14 each. The fair market
value on October 11, 2021 was $3. What is the effect of
the above on Mary's taxable income, assuming Mary
wants to minimize taxes?\\n\\nGroup of answer
choices\\n\\n$127,500 in 2023\\n\\n$45,000 in
2023\\n\\n$45,000 in 2022\\n\\n$82,500 in 2023
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