Please complete all parts and Do not Give image format. This year, Gogo, Incorporated granted a nonqualified stock option to Mwana to buy 10,000 shares of Gogo stock for $7.2 per share forfive years. At date of grant, Gogo stock was selling on a regional securities market for $6.76 per share. Gogo recorded $33,600compensation expense for the estimated value of the option.Required:a. How much income must Mwana recognize this year?b. Can Gogo deduct the $33,600 expense on this year's tax return?c. Assuming a 21 percent tax rate, compute Gogo's deferred tax asset or deferred tax liability (identify which) resulting from the$33,600 compensation expense.Complete this question by entering your answers in the tabs below.Required A Required B Required CHow much income must Mwana recognize this year?Recognized income This year, Gogo, Incorporated granted a nonqualified stock option to Mwana to buy 10,000 shares of Gogo stock for $7.2 per share forfive years. At date of grant, Gogo stock was selling on a regional securities market for $6.76 per share. Gogo recorded $33,600compensation expense for the estimated value of the option.Required:a. How much income must Mwana recognize this year?b. Can Gogo deduct the $33,600 expense on this year's tax return?c. Assuming a 21 percent tax rate, compute Gogo's deferred tax asset or deferred tax liability (identify which) resulting from the$33,600 compensation expense.Complete this question by entering your answers in the tabs below.Required A Required B Required CCan Gogo deduct the $33,600 expense on this year's tax return?YesNoO Show Transcribed TextGThis year, Gogo, Incorporated granted a nonqualified stock option to Mwana to buy 10,000 shares of Gogo stock for $7.2 per share forfive years. At date of grant, Gogo stock was selling on a regional securities market for $6.76 per share. Gogo recorded $33,600compensation expense for the estimated value of the option.Required:a. How much income must Mwana recognize this year?b. Can Gogo deduct the $33,600 expense on this year's tax return?c. Assuming a 21 percent tax rate, compute Gogo's deferred tax asset or deferred tax liability (identify which) resulting from the$33,600 compensation expense.Complete this question by entering your answers in the tabs below.Required A Required B Required CAssuming a 21 percent tax rate, compute Gogo's deferred tax asset or deferred tax liability (identify which) resulting from the$33,600 compensation expense.Deferred tax liability

Question

Please complete all parts and Do not Give image format. This year, Gogo, Incorporated granted a nonqualified stock option to Mwana to buy 10,000 shares of Gogo stock for $7.2 per share forfive years. At date of grant, Gogo stock was selling on a regional securities market for $6.76 per share. Gogo recorded $33,600compensation expense for the estimated value of the option.Required:a. How much income must Mwana recognize this year?b. Can Gogo deduct the $33,600 expense on this year's tax return?c. Assuming a 21 percent tax rate, compute Gogo's deferred tax asset or deferred tax liability (identify which) resulting from the$33,600 compensation expense.Complete this question by entering your answers in the tabs below.Required A Required B Required CHow much income must Mwana recognize this year?Recognized income< Required ARequired B > This year, Gogo, Incorporated granted a nonqualified stock option to Mwana to buy 10,000 shares of Gogo stock for $7.2 per share forfive years. At date of grant, Gogo stock was selling on a regional securities market for $6.76 per share. Gogo recorded $33,600compensation expense for the estimated value of the option.Required:a. How much income must Mwana recognize this year?b. Can Gogo deduct the $33,600 expense on this year's tax return?c. Assuming a 21 percent tax rate, compute Gogo's deferred tax asset or deferred tax liability (identify which) resulting from the$33,600 compensation expense.Complete this question by entering your answers in the tabs below.Required A Required B Required CCan Gogo deduct the $33,600 expense on this year's tax return?YesNo< Required ARequired C >O Show Transcribed TextGThis year, Gogo, Incorporated granted a nonqualified stock option to Mwana to buy 10,000 shares of Gogo stock for $7.2 per share forfive years. At date of grant, Gogo stock was selling on a regional securities market for $6.76 per share. Gogo recorded $33,600compensation expense for the estimated value of the option.Required:a. How much income must Mwana recognize this year?b. Can Gogo deduct the $33,600 expense on this year's tax return?c. Assuming a 21 percent tax rate, compute Gogo's deferred tax asset or deferred tax liability (identify which) resulting from the$33,600 compensation expense.Complete this question by entering your answers in the tabs below.Required A Required B Required CAssuming a 21 percent tax rate, compute Gogo's deferred tax asset or deferred tax liability (identify which) resulting from the$33,600 compensation expense.Deferred tax liability

Accepted Answer

Non Qualified Stock option refers to the option that does not qualify for tax advantage. These can…