This Year, Nilo Inc

This year, Nilo Inc. granted incentive stock options (ISO) to 230 employees. For financial statement purposes, Nilo recorded a $179,200 expense for the estimated value of the ISOs. As a result of this transaction, Nilo has a:

A) Temporary favorable book/tax difference
B) Temporary unfavorable book/tax difference
C) Permanent favorable book/tax difference
D) Permanent unfavorable book/tax difference

Correct Answer:

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