For incentive stock options granted when ASC 718 applies,the value of the options that accrue in a given year always creates a permanent,unfavorable book-tax difference.

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The value of the options that accrue in a given year is a deductible expense for tax purposes but is not recognized as an expense on the income statement. This creates a permanent, unfavorable book-tax difference.

For Incentive Stock Options Granted When ASC 718 Applies,the Value