What is book-tax difference due to options exercised


Response to the following problem:

In January 2011, Khors Company issues nonqualified stock options to its CEO, Jenny Svaro. Because the company does not expect Ms. Svaro to leave the company, the options vest at the time they are granted with a total value of $50,000. In December of 2012, the company experiences a surge in its stock price, and Ms. Svaro exercises the options. The total bargain element at the time of exercise is $60,000. For 2012, what is the book-tax difference due to the options exercised?

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Financial Accounting: What is book-tax difference due to options exercised
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