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7. Srow. So issued 60,000 incentive stock options (ISOs) to its employees on January 1, 2018 with an estimated value of $2 per option. The

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7. Srow. So issued 60,000 incentive stock options (ISOs) to its employees on January 1, 2018 with an estimated value of $2 per option. The options vest at 25 percent per year for four years (beginning in 2108). Each option allows the holder to purchase one share of I stock at $8. On January 1, 2019, employees exercised 12,500 options as IC's stock price reached $15. What is the amount of the book-tax difference in 2019 associated with the incentive stock options? Is it favorable or unfavorable? Is it temporary or permanent? Book Deduction Tax Deduction Difference 1. 7. Srow. So issued 60,000 incentive stock options (ISOs) to its employees on January 1, 2018 with an estimated value of $2 per option. The options vest at 25 percent per year for four years (beginning in 2108). Each option allows the holder to purchase one share of I stock at $8. On January 1, 2019, employees exercised 12,500 options as IC's stock price reached $15. What is the amount of the book-tax difference in 2019 associated with the incentive stock options? Is it favorable or unfavorable? Is it temporary or permanent? Book Deduction Tax Deduction Difference 1

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