14) Under its executive stock option plan, W Corporation granted options on January 1, 2021, that permit executives to purchase 31 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $19 per share. The fair value of the options, estimated by an appropriate option pricing model, is $5 per option. No forfeitures are anticipated. The options are exercised on April 2, 2024, when the market price is $22 per share. By what amount will W's shareholder's equity be increased when the options are exercised? A) $713 million. B) $744 million. C) $155 million. D) $589 million. 12) The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: Pretax accounting income included: 871 Overweight fines (not deductible for tax purposes) Depreciation expense 135 Depreciation in the tax return 435 The applicable tax rate is 25%. There are no other temporary or permanent differences. Franklin's balance sheet at the end of its first year would report: A) A deferred tax asset of $75 million among noncurrent assets. B) A deferred tax liability of $75 million among current liabilities. C) A deferred tax asset of $75 million among current assets. D) A deferred tax liability of $75 million among noncurrent liabilities. 13) A deferred tax asset represents a A) Future incom