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Ms. Joan Hanson is an employee of a Canadian controlled private corporation.  During 2018, 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 2019, she exercises all of these options.  At this time, the estimated market value of the stock is $31.50 per share.  On December 1, 2019, she sells the stock for $38.75 per share.  The net effect of the 2019 transactions on her Taxable Income would be:



		
An increase of $1,812.50.









		
An increase of $4,750.00.

		
An increase of $4,187.50.





		
An increase of $2,375.00.