hard · Financial Accounting accounting-cycle-financial-statements
Vesperia Logistics granted RSUs to employees with a grant-date fair value of $1,000,000. Over the vesting period, the company recognized $1,000,000 in book SBC expense and a corresponding DTA of $210,000. At vesting, the market value of the shares delivered is $1,500,000.
What is the impact on the income tax provision at vesting?
- A discrete tax benefit of $105,000 is recognized in Additional Paid-in Capital (APIC).
- A discrete tax benefit of $105,000 is recognized in the income statement.
- A tax expense of $105,000 is recognized to reverse the prior DTA.
- No impact, as the difference between book and tax SBC is a permanent difference.
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