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.

---

Definitions:

Representational Ability

The capacity of individuals to use symbols or objects to stand for something else, critical in language development and creative thinking.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed, a concept developed in early childhood according to Jean Piaget.

Visual Recognition

The ability to identify and categorize objects, places, and people by sight.

Habituation

The process by which an organism becomes accustomed to a stimulus after repeated exposures.