Orange Incorporated issued 22,000 nonqualified stock options valued at $44,000(in total). The options vest over...

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Accounting

Orange Incorporated issued 22,000 nonqualified stock options valued at $44,000(in total). The options vest over two years-half in 2024
(the year of issue) and half in 2025. One thousand options are exercised in 2025 with a bargain element on each option of $6. What is the
2025 book-tax difference associated with the stock options?
Multiple Choice
$16,000 unfavorable
$6,000 favorable
$27,000 unfnonable
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