Which of the Following Statements Regarding Nonqualified Stock Options (NQOs)

Which of the following statements regarding nonqualified stock options (NQOs) is false?

A) If ASC 718 (a codification of FAS 123R) applies, book-tax differences associated with NQOs may be either permanent or temporary.
B) In a given year when ASC 718 applies, if the value of the options that vest is greater than the bargain element of options exercised, the book-tax difference for that year is unfavorable.
C) Before ASC 718 applied, no expense recognition was required for NQOs for financial accounting purposes.
D) If ASC 718 does not apply, all stock option-related book-tax differences are temporary.