Which of the following describes the correct treatment of incentive stock options (ISOs)granted when ASC 718 does not apply?
A) Financial accounting-no expense; tax-no deduction.
B) Financial accounting-no expense; tax-deduct bargain element at exercise.
C) Financial accounting-expense value over vesting period; tax-no deduction.
D) Financial accounting-expense value over vesting period; tax-deduct bargain element at exercise.

Question

Quizplus · Accepted Answer

Incentive stock options (ISOs) do not require an expense for financial accounting purposes when ASC 718 does not apply, and there is no tax deduction available for the company.

Which of the Following Describes the Correct Treatment of Incentive