Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

eBay's footnote regarding employee stock compensation details the grant of 2 million options during the year of 2015, the fair-value of which was computed as

image text in transcribed

eBay's footnote regarding employee stock compensation details the grant of 2 million options during the year of 2015, the fair-value of which was computed as $6.84. If the options have, on average, a four-year vesting schedule and the company faces a 35% tax rate on income, what affect would this option grant have on eBay's accounts in 2015? THIS IS A VERY TOUGH QUESTION. A $1,197,000 increase to deferred tax asset, $1,197,000 decrease to tax expense B $4,788,000 increase to deferred tax asset, $4,788,000 decrease to tax expense C) $1,197,000 decrease to deferred tax asset, $1,197,000 increase to tax expense D $4,788,000 decrease to deferred tax asset, $4,788,000 increase to tax expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions