Orange Inc. issued 30,000 nonqualified stock options valued at $60,000 (in total). The options vest over two years—half in 2018 (the year of issue) and half in 2019. One thousand options are exercised in 2019 with a bargain element on each option of $6. What is the 2019 book-tax difference associated with the stock options? $24,000 unfavorable. $24,000 favorable. $30,000 unfavorable. $30,000 favorable. None of the choices are correct.
Orange Inc. issued 30,000 nonqualified stock options valued at $60,000 (in total). The options vest over two years—half in 2018 (the year of issue) and half in 2019. One thousand options are exercised in 2019 with a bargain element on each option of $6. What is the 2019 book-tax difference associated with the stock options? $24,000 unfavorable. $24,000 favorable. $30,000 unfavorable. $30,000 favorable. None of the choices are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject - Acounting
Orange Inc. issued 30,000 nonqualified stock options valued at $60,000 (in total). The options vest over two years—half in 2018 (the year of issue) and half in 2019. One thousand options are exercised in 2019 with a bargain element on each option of $6. What is the 2019 book-tax difference associated with the stock options?
$24,000 unfavorable.
$24,000 favorable.
$30,000 unfavorable.
$30,000 favorable.
None of the choices are correct.
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