Questions 20 to 23 are based on the following information: On January 1, 2016, Telespace Inc. grants 12 million stock options to its employees. The stock options have exercise price of $20, which is equal to the grant-date price. All options will vest in three years. The grant date fair value of the options is $15 per option. All 12
Questions 20 to 23 are based on the following information: On January 1, 2016, Telespace Inc. grants 12 million stock options to its employees. The stock options have exercise price of $20, which is equal to the grant-date price. All options will vest in three years. The grant date fair value of the options is $15 per option. All 12
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
How much is the deferred tax to be recognized in year 2017?
Answer is “deferred tax asset of $18 million”.
Please explain the reasoning and calculations.
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