For incentive stock options, the value of the options that is expensed as compensation in a given year creates a permanent, unfavorable book-tax difference.

Name: For incentive stock options, the value of the options that is expensed as compensation in a given year creates a permanent, unfavorable book-tax difference.
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This is because the compensation expense recorded for incentive stock options is deductible for book purposes but not for tax purposes, creating a permanent book-tax difference.

For Incentive Stock Options, the Value of the Options That