All of the Following Are Correct Regarding Phantom Stock Except

question 8

Multiple Choice

All of the following are correct regarding Phantom Stock except:

• A)The phantom stock bonus must be paid in cash.
• B)The Phantom Stock bonus is taxed as ordinary income.
• C)The Phantom Stock bonus is deductible by the employer.
• D)There is no compensation reported when a grant of phantom stock is made.

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Definitions:

Bridge Circuit

A circuit that consists of four sections connected in series to form a closed loop.

D'Arsonval Shunt

A D'Arsonval shunt is a precision resistor used in conjunction with a D'Arsonval meter movement to allow the measurement of high currents by diverting some of the current away from the sensitive galvanometer coil.

Contact Resistance

The resistance to the flow of electricity encountered at the point where two conductive surfaces meet or connect.

Typical Impedance

A standard or average measure of the total resistance faced by current in an electrical circuit, combining both resistive and reactive elements.