Byrd Inc. granted Roger, its president, an option to purchase 11,000 shares for $9 per share. On February 16, 2018, he acquired the 11,000 shares under the option. The following pertains to the shares:
Option granted- July 10, 2020- Fair market value: $12
Option exercised- February 16, 2018- Fair market value- $22
Shares to be sold- March 17, 2019- Fair market value- $45
Determine the tax consequences to Roger’s income in 2019 if Byrd Inc. was a CCPC.
In 2019, Roger will have an employment income inclusion of $ Blank 1. He will also have a taxable capital gain (not required to calculate the TCG).
