Question
Orange Inc. issued 30,000 nonqualified stock options valued at $60,000 (in total). The options vest over two yearshalf in 2018 (the year of issue) and
Orange Inc. issued 30,000 nonqualified stock options valued at $60,000 (in total). The options vest over two yearshalf in 2018 (the year of issue) and half in 2019. One thousand options are exercised in 2019 with a bargain element on each option of $6. What is the 2019 book-tax difference associated with the stock options?
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
