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I need help with all parts.... Assume that on January 1, year 1, ABC, Inc. issued 5,000 non-qualified stock options with an estimated value of

I need help with all parts....

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Assume that on January 1, year 1, ABC, Inc. issued 5,000 non-qualified stock options with an estimated value of $10 per option. Each option entitles the owner to purchase one share of ABC stock for $25 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 5,000 stock options were exercised in year 3 when the ABC stock was valued at $31 per share. Compute ABC's ASC 718 book compensation expense for year 1 and year 2. Compute ABC's year 3 tax deduction for federal income tax purposes. Compute temporary book-tax differences associated with the stock options for year 1, year 2, and year 3. For the temporary differences label them as favorable or unfavorable. Compute the permanent difference associated with the stock options for year 3. For the permanent difference, label it as favorable or unfavorable

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