Question: help me study and i will give a good rating Assume that on January 1. year 1, ABC Incorporated issued 7.000 stock options with an

 help me study and i will give a good rating Assumethat on January 1. year 1, ABC Incorporated issued 7.000 stock options

help me study and i will give a good rating
with an estimated value of $8 per option. Each option entitles the
owner to purchase one share of ABC stock for $27 a share

Assume that on January 1. year 1, ABC Incorporated issued 7.000 stock options with an estimated value of $8 per option. Each option entitles the owner to purchase one share of ABC stock for $27 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 7,000 stock options were exercised in year 3 when the ABC stock was valued at $32 per share. Identify ABC's year 1, 2, and 3 tax deductions and book-tax differences (indicate as favorable or unfavorable and as permanent or temporary) associated with the stock options under the following alternative scenarios: Required: a. The stock options are incentive stock options. b. The stock options are nonqualified stock options. toenplete the folcowing table lote: For nll requirements, leave no answer blank. Enter zero if applicable and select "Not Applicnble" if ne effect

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