Assume that on January $1,$ year $1,$ ABC, Inc. issued $5,000$ stock options with an estimated value of $$10$ per option. Each option entitles the owner to purchase one share of ABC stock for $$25$ a share $($the per share price of ABC stock on January $1,$ year $1$ when the options were granted$).$ The options vest at the end of the day on December $31,$ year $2.$ All $5,000$ stock options were exercised in year $3$ when the ABC stock was valued at:

$$35$ per share

$$50$ per share

$$22$ per share

Using the $3-$column Excel template $($Provision$,$ Liability and Deferred$),$ identify ABC$$s year $1,2,$ and $3$ book and tax deductions and book$-$tax differences $($indicate whether permanent and$/$or temporary$)$ associated with the stock options assuming the stock options are nonqualified stock options and ASC $718$ applies to the options.