Which of the Following Describes the Correct Treatment of Incentive

question 25

Multiple Choice

Which of the following describes the correct treatment of incentive stock options (ISOs) granted when ASC 718 (a codification of FAS 123R) does not apply?

• A) Financial accounting-no expense; tax-no deduction
• B) Financial accounting-no expense; tax-deduct bargain element at exercise
• C) Financial accounting-expense value over vesting period; tax-no deduction
• D) Financial accounting-expense value over vesting period; tax-deduct bargain element at exercise

---

Definitions:

T-statistic

A type of statistic used to estimate the population parameter based on a sample statistic.

Sample Means

The average values obtained from multiple small groups (samples) taken from a larger population, used in statistical analyses.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values.

Groups

Groups refer to sets of subjects or items that are categorized together based on specific characteristics or treatments in an experiment or study.