Which of the Following Statements Regarding Nonqualified Stock Options (NQOs)is

question 2

Multiple Choice

Which of the following statements regarding nonqualified stock options (NQOs) is false?

• A)Book-tax differences associated with NQOs may be either permanent or temporary.
• B)If the value of the options that vest is greater than the bargain element of options exercised, the book-tax difference for that year is unfavorable.
• C)No expense recognition is required for NQOs for financial accounting purposes.
• D)All stock option-related book-tax differences are temporary.

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