Compensation expense related to employee stock options is a tax-deductible expense for the corporation.

Question

Quizplus · Accepted Answer

Compensation expense related to employee stock options is considered a tax-deductible expense for the corporation under the U.S. tax code. This means that the corporation can deduct the cost of the stock option plan from its taxable income, resulting in a reduction of its tax liability. However, it is important to note that the tax treatment of employee stock options can vary depending on the country and jurisdiction in which the corporation operates.

Compensation Expense Related to Employee Stock Options Is a Tax-Deductible