Accounting for nonqualified stock option plans results in all of the following except: Multiple Choice...

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Accounting

Accounting for nonqualified stock option plans results in all of the following except:

Multiple Choice

  • Nonqualified stock option accounting results in a temporary tax difference.

  • Nonqualified stock option accounting results in a deferred tax asset based on compensation expense for the year.

  • Accounting for nonqualified stock options provides the employer a tax deduction for the intrinsic value of the options at the date of exercise.

  • The tax deduction for the options exercised will match the amount of the GAAP compensation expense for those options exercised.

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