Orange Inc.issued 20,000 nonqualified stock options valued at $40,000 (in total)on December 31, 2018.The options vest entirely on December 31, 2019.The options were all exercised in 2019 with a bargain element on each option of $3.What is the 2019 book-tax difference associated with the stock options?

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The book expense is $60,000 (20,000 options x $3 bargain element). The tax deduction is $40,000 (20,000 options x $2 exercise price). The book-tax difference is $20,000 unfavorable.