Multiple Choice
Orange Inc.issued 20,000 nonqualified stock options valued at $40,000 (in total) on December 31, 2018.The options vest entirely on December 31, 2019.The options were all exercised in 2019 with a bargain element on each option of $3.What is the 2019 book-tax difference associated with the stock options?
A) $40,000 unfavorable.
B) $40,000 favorable.
C) $20,000 unfavorable.
D) $20,000 favorable.
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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