This year, Nilo Inc. granted incentive stock options (ISO) to 230 employees. For financial statement purposes, Nilo recorded a $179,200 expense for the estimated value of the ISOs. As a result of this transaction, Nilo has a:
A. Permanent unfavorable book/tax difference
B. Temporary favorable book/tax difference
C. Permanent favorable book/tax difference
D. Temporary unfavorable book/tax difference
Answer: A
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