Which of the Following Statements Regarding Incentive Stock Options (ISOs)

question 78

Multiple Choice

Which of the following statements regarding incentive stock options (ISOs) is false?

• A) For ISOs granted when ASC 718 applies, book-tax differences are always unfavorable.
• B) If ASC 718 applies, book-tax differences associated with ISOs may be either permanent or temporary.
• C) If ASC 718 applies, the value expensed for book purposes in a given year is the value of the options that accrue.
• D) If ASC 718 does not apply, ISOs do not create book-tax differences.

---

Definitions:

Salesmen

Salesmen are individuals who sell goods and services to customers, aiming to meet customers' needs while achieving sales targets.

Delivery Services

Companies or agents that transport goods from one location to another.

Late Packages

Late packages refer to parcels, mail, or cargo that are delivered after the expected delivery time.

Simpson's Paradox

A statistical phenomenon in which a trend appears in different groups of data but disappears or reverses when the groups are combined.