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The following information is for questions one through six. This year, CSUEB Inc. granted a nonqualified stock option to Luca Muoz to buy 10,000 shares

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The following information is for questions one through six. This year, CSUEB Inc. granted a nonqualified stock option to Luca Muoz to buy 10,000 shares of CSUEB stock for $10 per share for five years. At date of grant, CSUEB stock was selling on a regional securities market for $8 per share. CSUEB recorded $25,000 compensation expense for the estimated value of the option. Assuming a 30% = (21% federal + 9% state) tax rate, compute CSUEB's deferred tax asset or deferred tax liability (identify which) resulting from the $25,000 compensation expense. A. $0 OB. $7,500 Deferred Tax Asset OC. $7,500 Deferred Tax Liability D. $25,000 Deferred Tax Asset E. $25,000 Deferred Tax Liability

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