Which of the following statements is correct when describing the tax treatment to the employees of stock options? Multiple choice question. The bargain element is taxed as ordinary income on the grant date for ISOs. The bargain element is taxed as ordinary income on the vesting date for both ISOs and NQOs. The bargain element is taxed as ordinary income on the grant date for NQOs. There are no tax consequences on the grant date or the vesting date for both ISOs and NQOs.