Which of the following describes the correct treatment of incentive stock options (ISOs)?
A)Financial accounting-no expense; tax-no deduction.
B)Financial accounting-no expense; tax-deduct bargain element at exercise.
C)Financial-expense value over vesting period; tax-no deduction.
D)Financial-expense value over vesting period; tax-deduct bargain element at exercise.

Question

Quizplus · Accepted Answer

In financial accounting, the value of ISOs is expensed over the vesting period. For tax purposes, there is no deduction for the company when ISOs are exercised.

Which of the Following Describes the Correct Treatment of Incentive