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16. Scott Bicycle Manufacturing Ltd. (SBM) is a Canadian controlled private corporation. Brian Mills, one of...

16. Scott Bicycle Manufacturing Ltd. (SBM) is a Canadian controlled private corporation. Brian Mills, one of SBM’s employees, was granted stock options on January 15, 2014 for 10,000 shares at $3 per share. The fair market value on January 15, 2014 was $4 per share. Brian exercised the stock options on September 30, 2014, when the fair market value was $6 per share. In June, 2017, Brian purchased a new home and sold the shares for $7 each. What is the effect of these facts on Brian’s Taxable Income? A. An increase of $15,000 in 2014 B. An increase of $15,000 in 2017. C. An increase of $30,000 in 2014. D. An increase of $20,000 in 2017. E. None of the above.

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