For Incentive Stock Options Granted When ASC 718 (A Codification

question 133

True/False

For incentive stock options granted when ASC 718 (a codification of FAS 123R) applies, the value of the options that vest in a given year always creates a permanent, unfavorable book-tax difference.

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Definitions:

Opaque

A characteristic of materials that are not transparent or translucent; they do not allow light to pass through.

Vascular Tunic

Middle layer of the eye; contains many blood vessels.

Iris

Specialized portion of the vascular tunic; the “colored” portion of the eye that can be seen through the cornea.

Fovea Centralis

The fovea centralis is a small depression in the retina of the eye where visual acuity is highest, due to the concentration of cones, which are photoreceptor cells responsible for color vision.