Chan’s employer gave him a share option in March last year to buy 10,000 shares in X Ltd for $5 each when the market price of the shares was $10. Mr. Chan exercised the share option in March this year when the market price of the shares was $15 each. He sold all the shares yesterday for $20 each. What is the share option gain to be included in the assessable income?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Mr. Chan’s employer gave him a share option in March last year to buy 10,000 shares in X Ltd for $5 each when the market price of the shares was $10.  Mr. Chan exercised the share option in March this year when the market price of the shares was $15 each.  He sold all the shares yesterday for $20 each.  

What is the share option gain to be included in the assessable income?

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