Which of the following statements regarding incentive stock options (ISOs) is false?
A) For ISOs granted when ASC 718 applies, book-tax differences are always unfavorable.
B) If ASC 718 applies, book-tax differences associated with ISOs may be either permanent or temporary.
C) If ASC 718 applies, the value expensed for book purposes in a given year is the value of the options that accrue.
D) If ASC 718 does not apply, ISOs do not create book-tax differences.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements regarding incentive stock options (ISOs) is false?
A) For ISOs granted when ASC 718 applies, book-tax differences are always unfavorable.
B) If ASC 718 applies, book-tax differences associated with ISOs may be either permanent or temporary.
C) If ASC 718 applies, the value expensed for book purposes in a given year is the value of the options that accrue.
D) If ASC 718 does not apply, ISOs do not create book-tax differences.

Which of the Following Statements Regarding Incentive Stock Options (ISOs)