June Inc. issued 9,000 nonqualified stock options valued at $27,000 (in total--$3 each). Each option entitles holder to purchase one share of stock at $5 per share. The options vest over three years - one-third in 2016 year of issue), one-third in 2017, and one-third in 2018. Three thousand options are exercised in 2017 at a tim when the stock price of the stock is $9. What is the 2017 book-tax difference associated with the stock optic (assume ASC 718 applies to the options)? $3,000 favorable $1,500 unfavorable $6,000 favorable

June Inc. issued 9,000 nonqualified stock options valued at $27,000 (in total--$3 each). Each option entitles holder to purchase one share of stock at $5 per share. The options vest over three years - one-third in 2016 year of issue), one-third in 2017, and one-third in 2018. Three thousand options are exercised in 2017 at a tim when the stock price of the stock is $9. What is the 2017 book-tax difference associated with the stock optic (assume ASC 718 applies to the options)? $3,000 favorable $1,500 unfavorable $6,000 favorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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