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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
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
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