15. Ms. Joan Hanson is an employee of a Canadian controlled private corporation. During 2016, she...
15. Ms. Joan Hanson is an employee of a Canadian controlled private corporation. During 2016, she receives options to purchase 500 shares of her employer’s common stock at a price of $22 per share. At this time, the estimated per share value of the stock is $20.50. During 2017, she exercises all of these options. At this time, the estimated market value of the stock is $31.50 per share. On December 1, 2017, she sells the stock for $38.75 per share. The net effect of the 2017 transactions on her Taxable Income would be: A. An increase of $1,812.50. B. An increase of $2,375.00. C. An increase of $4,187.50. D. An increase of $4,750.00. E. An increase of $6,562.50.
Homework Answers
| Employment Income | = (Market Value - Exercise Price) X Number of Shares | = (31.5 - 22) X 500 | = $4,750 | ||
| Capital Gain | = (sale Price - Market price at exercise) X Number of shares | = (38.75 - 31.5) X 500 | = $3,625 | 50% = $1,812.5 | |
| Net Increase | = 4,750 + 1,812.5 | = $6,562.5 | |||
| In 2017 | SOR | = (4,750 X 0.5) | = $2,375 | ||
| Net Increase | = 6,562.5 - 2,375 | = $4,187.5 | |||
Answer is option C
Add Answer to:
15. Ms. Joan Hanson is an employee of a Canadian controlled
private corporation. During 2016, she...
Su-Ling is a sales representative for a Canadian controlled private corporation that manufactures office furniture. Her...
Su-Ling is a sales representative for a Canadian controlled private corporation that manufactures office furniture. Her gross salary for the year ending December 31, 2020, is $53,000 and, in addition, she earned commissions of $34,500 [25% of the bonus was not received until January 5, 2021]. For the 2020 taxation year, her employer withheld the following amounts from her income: Federal and Provincial Income Taxes $22,400 Registered Pension Plan Contributions. 3,200 Contributions to Group Disability Plan. 212 EI Premiums 856...
G is employed by a Canadian-controlled private corporation. In year 1, G was granted a stock...
G is employed by a Canadian-controlled private corporation. In year 1, G was granted a stock option to acquire 4,000 shares from the treasury of his employer’s corporation for $7 a share. At the time of receiving the option, the shares were valued at $13 per share. In year 3, G exercised his option and purchased 4,000 shares for $28,000. At the purchase date in year 3, the shares were valued at $12 per share. In year 6, G sold...
TIF PROBLEM THREE - 12 Employee Stock Options During January, 2013, Lastech Inc. issued options to...
TIF PROBLEM THREE - 12 Employee Stock Options During January, 2013, Lastech Inc. issued options to their employee, Ms. Marianne Black. The options allowed Ms. Black to acquire 1,500 of the Company's common shares at an option price of $23 per share. At the point in time when the options were exercised, the fair market value of the shares was $25 per share. All of the shares that are acquired through the options are sold on December 31, 2015 at...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50,000 Common Shares and 20,000 $2 cumulative preferred shares outstanding. Contributed Share Capital on that date as per the Balance Sheet is the following: Common Shares: 150,000 Preferred Shares: 140,000 Retained Earnings: 79,250 During 2019, the company performed the following share related transactions. 1. Issued 5,000 common shares for $2.80 each. 2. Issued 1,000 preferred shares in exchange...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50,000 Common Shares and 20,000 $2 cumulative preferred shares outstanding. Contributed Share Capital on that date as per the Balance Sheet is the following: Common Shares: 150,000 Preferred Shares: 140,000 Retained Earnings: 79,250 During 2019, the company performed the following share related transactions. 1. Issued 5,000 common shares for $2.80 each. 2. Issued 1,000 preferred shares in exchange...
Pasqual Melo is employed by a public corporation. On January 1, 2019, she was given an...
Pasqual Melo is employed by a public corporation. On January 1, 2019, she was given an option to purchase 1,000 shares of the public corporation for $8 per share the option extended for two years) On December 15, 2019, she exercised her option and bought 1,000 shares et $8 per share (total = $8,000). On June 15, 2022, she sold the 1.000 shares. The value of the shares at the particular dates was as follows: Date option granted Date option...
Ms. Brenda Fisher has been employed for many years as a computer technician in Vancouver, British...
Ms. Brenda Fisher has been employed for many years as a computer technician in Vancouver, British Columbia. Her employer is a large publicly traded Canadian company. During 2018, Ms. Brenda Fisher’s gross salary was $250,000. In addition, she was awarded a $50,000 bonus to reflect her exceptional performance in 2018. Ms. Brenda Fisher arranged with her employer that none of this bonus would be paid until 2025. Other Information: Ms. Brenda Fisher’s employer withheld the following amounts from her income:...
On January 2, 2019, Ms. Shirley Kantor moves from London, Ontario, to Thunder Bay, Ontario, in...
On January 2, 2019, Ms. Shirley Kantor moves from London, Ontario, to Thunder Bay, Ontario, in order to begin employment with Northern Enterprises Ltd. (NEL). Her salary for the year was $142,000. NEL withheld the following amounts from her earnings: Federal And Provincial Income Tax $32,500 Registered Pension Plan Contributions (NEL Makes A Matching Contribution) 3,200 EI Premiums 860 CPP Contributions 2,749 United Way Donations 450 Professional Association Dues 1,250 Other Information: Shirley’s moving expenses total $6,800. NEL reimbursed...
CANADIAN TAXATION 2019 During the current year, R received a salary of $80,000. She also earned...
CANADIAN TAXATION 2019 During the current year, R received a salary of $80,000. She also earned commissions of $30,000 of which $20,000 was received in the current year. The remaining commissions were paid in January of the following year. What is R's employment income for the current year? $ M is employed in the soft drink industry. In addition to his salary, he enjoyed the following benefits paid for by his employer in the current year: Contribution to company pension...
ssignment Problem Three - 10 Employment Income) Braxton has worked for AAAA Retailers for a number...
ssignment Problem Three - 10 Employment Income) Braxton has worked for AAAA Retailers for a number of years. AAAA is a Canadian Ted private corporation. It operates three children's clothing stores in the Edmonton Ms. Alexa Braxi controlled priv area. Her salary for the earnings: lary for the year 2019 was $120,000. AAAA withheld the following amounts from her Federal And Provincial Income Tax El Premiums $20,400 CPP Contributions 860 Private Health Care Plan - Employee Portion 2,749 Union Dues...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50,000 Common Shares and 20,000 $2 cumulative preferred shares outstanding. Contributed Share Capital on that date as per the Balance Sheet is the following: Common Shares: 150,000 Preferred Shares: 140,000 Retained Earnings: 79,250 During 2019, the company performed the following share related transactions. 1. Issued 5,000 common shares for $2.80 each. 2. Issued 1,000 preferred shares in exchange...
HP5P is a Canadian Controlled Private Corporation. The company was formed on Jan 1, 2017. On Dec 31, 2018, the company had 50,000 Common Shares and 20,000 $2 cumulative preferred shares outstanding. Contributed Share Capital on that date as per the Balance Sheet is the following: Common Shares: 150,000 Preferred Shares: 140,000 Retained Earnings: 79,250 During 2019, the company performed the following share related transactions. 1. Issued 5,000 common shares for $2.80 each. 2. Issued 1,000 preferred shares in exchange...
Pasqual Melo is employed by a public corporation. On January 1, 2019, she was given an option to purchase 1,000 shares of the public corporation for $8 per share the option extended for two years) On December 15, 2019, she exercised her option and bought 1,000 shares et $8 per share (total = $8,000). On June 15, 2022, she sold the 1.000 shares. The value of the shares at the particular dates was as follows: Date option granted Date option...
CANADIAN TAXATION 2019 During the current year, R received a salary of $80,000. She also earned commissions of $30,000 of which $20,000 was received in the current year. The remaining commissions were paid in January of the following year. What is R's employment income for the current year? $ M is employed in the soft drink industry. In addition to his salary, he enjoyed the following benefits paid for by his employer in the current year: Contribution to company pension...
ssignment Problem Three - 10 Employment Income) Braxton has worked for AAAA Retailers for a number of years. AAAA is a Canadian Ted private corporation. It operates three children's clothing stores in the Edmonton Ms. Alexa Braxi controlled priv area. Her salary for the earnings: lary for the year 2019 was $120,000. AAAA withheld the following amounts from her Federal And Provincial Income Tax El Premiums $20,400 CPP Contributions 860 Private Health Care Plan - Employee Portion 2,749 Union Dues...
Most questions answered within 3 hours.
-
The mean waiting time at the drive-through of a fast-food
restaurant from the time an order...
asked 4 minutes ago -
The pitch (p) of a helix is defined as p = dn, in which n is...
asked 6 minutes ago -
Do you agree that the declining stock of social capital is the
blame for the failure...
asked 10 minutes ago -
A researcher is interested in whether coffee consumption helps
with performance on reading comprehension tasks. The...
asked 19 minutes ago -
it has been estimated since the beginning of the human race that
about 133 metric ton...
asked 25 minutes ago -
Where must Medicare prescription drug plans allow for
participants to fill their prescriptions?
asked 28 minutes ago -
Five moles of monatomic ideal gas have initial pressure 2.50 ×
103 Pa and initial volume...
asked 43 minutes ago -
A resistor and the capacitor are used to control the timing in
the RC circuit of...
asked 43 minutes ago -
Living in a group could bring several disadvantages to an
individual. What are some of the...
asked 1 hour ago -
Complete and balance the following reactions. In case of no
reaction occurring write NR.
Mix #1:...
asked 1 hour ago -
If an economy consumes 75% of any increase in income, then an
increase in autonomous investment...
asked 1 hour ago -
A shotputter throws the shot with an initial speed of 15.8 m/s
at a 38.0 ∘...
asked 1 hour ago