Assume that on January 1, year 1, ABC Incorporated issued 7,100 stock options with an estimated value of \$16 per option. Each option entitles the owner to purchase one share of ABC stock for $32 a share (the per share price of ABC stock on January 1 , year 1 , when the options were granted). The options vest at the end of the day on December 31, year 2. All 7,100 stock options were exercised in year 3 when the ABC stock was valued at $36 per share. Identify ABC 's year 1, 2, and 3 tax deductions and book-tax differences (indicate as favorable or unfavorable and as permanent or temporary) associated with the stock options under the following alternative scenarios: Required: a. The stock options are incentive stock options. b. The stock options are nonqualified stock options. Complete the following table. Note: For all requirements, leave no answer blank. Enter zero if applicable and select "Not Applicable" if no effect