On January 1,2005 [before the adoption of ASC 718],Net Optimizers Inc.granted 1,000 nonqualified stock options (NQOs)valued at $.05 per option.Each option entitles the owner to purchase one share of stock for $1.These options vest at 10 percent per year for ten years.On December 31,2017,300 options are exercised when the stock price is $5.In 2017,what is the book-tax difference associated with the stock options? Is it favorable or unfavorable? Is it permanent or temporary?

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The Answer of On January 1,2005 [before the adoption of ASC 718],Net Optimizers Inc.granted 1,000 nonqualified stock options (NQOs)valued at $.05 per option.Each option entitles the owner to purchase one share of stock for $1.These options vest at 10 percent per year for ten years.On December 31,2017,300 options are exercised when the stock price is $5.In 2017,what is the book-tax difference associated with the stock options? Is it favorable or unfavorable? Is it permanent or temporary?

On January 1,2005 [Before the Adoption of ASC 718],Net Optimizers