Question 11 of 15. Which of the following statements regarding statutory stock options is true? Compensation is recognized when a statutory stock option is granted. Incentive stock options can be issued to outside service providers as well as employees. An option granted under an employee stock purchase plan may be a statutory stock option. Compensation is recognized when statutory stock options are exercised. Mark for follow up Question 12 of 15. All of the following are benefits associated with statutory stock options EXCEPT: The taxpayer does not have to include any amount in income when the option is granted. The taxpayer does not have to include any amount in their regular, taxable income when they exercise the option. All profits from the sale of underlying stock are subject to the more favorable capital gain tax rates. If the taxpayer has a nonqualifying disposition, the amount of compensation included in income is not subject to social security and medicare tax. Mark for follow up