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I ONLY NEED THE ANSWERS IN LESS THAN 10 MINUTES PLEASE Alistair Gavos Greek Foods (AGGF) issued 20,000 non-qualified stock options (NQOs) to its employees
I ONLY NEED THE ANSWERS IN LESS THAN 10 MINUTES PLEASE
Alistair Gavos Greek Foods (AGGF) issued 20,000 non-qualified stock options (NQOs) to its employees on January 1, 2019. Each option entitles the employee to purchase one share of stock for $4. The options were valued at $1 per option for book purposes. These options vest (accrue) at 50 percent per year for two years beginning in 2019. By the end of 2020, all 20,000 of the options had vested. During 2021, these same 20,000 options were exercised when the stock price was $6.25 per share. 1. What is AGGF's total book-tax difference (in this case, the tax compensation expense) associated with the stock options for 2021? (Format: $1,234) 700,800.25 2. How much of the 2021 book-tax difference is temporary? (Format: $1,234) 80000 3. Is the 2021 temporary difference favorable or unfavorable? (Format: favorable or unfavorable) favorable 4. How much of the 2021 book-tax difference is permanent? (Format: $1,234) 70,800.25 5. Is the 2021 permanent difference favorable or unfavorable? (Format: favorable or unfavorable unfavorable Alistair Gavos Greek Foods (AGGF) issued 20,000 non-qualified stock options (NQOs) to its employees on January 1, 2019. Each option entitles the employee to purchase one share of stock for $4. The options were valued at $1 per option for book purposes. These options vest (accrue) at 50 percent per year for two years beginning in 2019. By the end of 2020, all 20,000 of the options had vested. During 2021, these same 20,000 options were exercised when the stock price was $6.25 per share. 1. What is AGGF's total book-tax difference (in this case, the tax compensation expense) associated with the stock options for 2021? (Format: $1,234) 700,800.25 2. How much of the 2021 book-tax difference is temporary? (Format: $1,234) 80000 3. Is the 2021 temporary difference favorable or unfavorable? (Format: favorable or unfavorable) favorable 4. How much of the 2021 book-tax difference is permanent? (Format: $1,234) 70,800.25 5. Is the 2021 permanent difference favorable or unfavorable? (Format: favorable or unfavorable unfavorableStep by Step Solution
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