Orange Inc. issued 29,000 nonqualified stock options valued at $58,000 (in total). The options vest over two yearshalf in 2017 (the year of issue) and half in 2018. One thousand options are exercised in 2018 with a bargain element on each option of $8. What is the 2018 book-tax difference associated with the stock options?

Multiple Choice

$21,000 unfavorable.

$29,000 unfavorable.

$29,000 favorable.

None of the choices are correct.

$21,000 favorable.