One year after granting 25,000 units options exercisable after 4 years of service, Zarnovel prepares its year-end: 1 year of service has been rendered, the share price shows an intrinsic value of 18 per option, and the tax law in the case will deduct the intrinsic value on exercise, allocated to services in proportion to the period elapsed. Tax rate: 30%; sufficient future profits. What deferred tax asset does Zarnovel recognise?
- Options granted
- 25,000
- Intrinsic value per option at the reporting date
- 18
- Years of service rendered
- 1
- Required service period (years)
- 4
- Tax rate (%)
- 30 %