Which of the following statements regarding incentive stock options (ISOs) is false?
A) If ASC 718 (a codification of FAS 123R) does not apply, ISOs do not create book-tax differences.
B) For ISOs granted when ASC 718 applies, book-tax differences are always unfavorable.
C) If ASC 718 applies, the value expensed for book purposes in a given year is the value of the options that vest.
D) If ASC 718 applies, book-tax differences associated with ISOs may be either permanent or temporary.

Question

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The Answer of Which of the following statements regarding incentive stock options (ISOs) is false?
A) If ASC 718 (a codification of FAS 123R) does not apply, ISOs do not create book-tax differences.
B) For ISOs granted when ASC 718 applies, book-tax differences are always unfavorable.
C) If ASC 718 applies, the value expensed for book purposes in a given year is the value of the options that vest.
D) If ASC 718 applies, book-tax differences associated with ISOs may be either permanent or temporary.

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