Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 unfavorable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

College Accounting Ch 1-12

Authors: Dansby

5th Edition

0763834955, 978-0763834951

More Books

Students also viewed these Accounting questions