Multiple Choice
Orange Incorporated issued 28,500 nonqualified stock options valued at $57,000 (in total) . The options vest over two years-half in 2020 (the year of issue) and half in 2020. One thousand options are exercised in 2021 with a bargain element on each option of $7. What is the 2021 book-tax difference associated with the stock options?
A) $21,500 unfavorable.
B) $21,500 favorable.
C) $28,500 unfavorable.
D) $28,500 favorable.
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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