For the following scenario, determine the dollar amount of the book-taxdifference (if any) written as a positive numberin 2015.

On January 1, 2015, Landmark Corporation offered its CFO 1,000 options to purchase the company's at the same price offered by the public market on that day, $12/share, at any date in the future after the CFO vests. The CFO will vest 25% of its options in 2015, 25% in 2016, and vest the remaining portion in 2017. The CFO promptly exercised all of his options on December 31, 2017 when he was 100% vested and turned around and sold all the shares for $20/share on the public market. Assume that on the grant date, Landmark Corporation estimated the value of the options would be $8/share. The company uses a calendar year tax period.

A. The book-tax difference in 2015 is $0.

B. The book-tax difference in 2015 is $2,000.

C. The book-tax difference in 2015 is $4,000.

D. The book-tax difference in 2015 is $8,000.

E. None of the above.

Determine whether the book-tax difference (ifany)in 2015is permanent or temporary.

Determine whether the book-tax difference (if any)in 2015is favorable or unfavorable.