12) In 2016, FASB issued a new standard on accounting for employee stock options. The new standard changed the accounting for excess tax benefits when employees exercise stock options and realize gains more gains than that estimated at the grant date. Compared with the old accounting standard effective between 2006 and 2016, what will happen as a result of the adoption of the new standard when a company realizes excess tax benefits:

Select one:

a. Lower operating cash flow

b. lower tax expense

c. Higher additional paid-in capital

d. higher tax expense

Clear my choice