Which of the following statements regarding nonqualified stock options (NQOs) is false?

A) Book-tax differences associated with NQOs may be either permanent or temporary.

B) If the value of the options that accrue is greater than the bargain element of options exercised, the book-tax difference for that year is unfavorable.

C) No expense recognition is required for NQOs for financial accounting purposes.

D) All stock option-related book-tax differences are temporary.

Explain.