On january 1, 2015, Landmark Corporation offered its CFO 2,500 NAOs options to purchase the company's at the same price offered by the public market on that day, $11/share, at any daye jn the futute after the CFO vests. the CFO will vest 25% of its options in 2015, 25% in 2016, and vest the remaining portion in 2017. the CFO promptly exercised all of his options on December 31, 2017 when he was 100% vested and turned around and sold all the shares for $15/share in the public market. assume that in the frant date, Landmark Corporation estimates the value of the options would be $4/share. the company uses a calendar year tax period.

 

A. Permanent

B. Temporary

C. Not applicable as there is no book tax difference