Please respond only if you know the correct answer. Need assistance with the red areas. Solution explanation would be appreciated. Thank you for your help.

Assume that on January 1, year 1, ABC Inc. issued 9,000 stock options with an estimated value of $9 per option. Each option entitles the owner to purchase one share of ABC stock for $34 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 9,000 stock options were exercised in year 3 when the ABC stock was valued at $41 per share. Identify ABC's year 1, 2, and 3 tax deductions and book-tax differences (indicate whether permanent and/or temporary) associated with the stock options under the following alternative scenarios: a. The stock options are incentive stock options and ASC 718 does not apply to the options b. The stock options are nonqualified stock options and ASC 718 does not apply to the options C. The stock options are incentive stock options and ASC 718 applies to the options d. The stock options are nonqualified stock options and ASC 718 applies to the options. Complete the following table. (Input all amounts as positive values. Leave no answer blank. Enter zero if applicable.) Answer is complete but not entirely correct ear 3 Book-Tax Book-Tax Templ Perm Templ Perm Pre ASC 718 NIA. N/A V NIA OV NIA. 0 N/A Incentive Stock Options V 63,000 Favorable v Permanent 0 N/A NIA. 0 N/A N/A Nonqualified Stock Options Under ASC 718 s 1X Unfavorable Permanent 0 NIA NIA 1X Unfavorable Permanent Incentive Stock options 1x Unfavorable Temporary s 1X Favorable Temporary 1X Unfavorable Temporary Nonqualified Stock Options 1X Unfavorable Permanent