Chapter 16 Key Terms

Affiliated group

Annualized income method

Bargain element (of stock options)

Book (financial reporting) income

Book–tax difference

Capital gain property

Charitable contribution limit modified taxable income

Consolidated tax return

DRD modified taxable income

Exercise price

Favorable book–tax difference

Grant date

Incentive stock options (ISO)

M adjustments

Net capital loss carryback

Net capital loss carryover

Net operating loss (NOL)

Net operating loss carryback

Net operating loss carryover

Nonqualified stock options (NQO)

Ordinary income property

Permanent book–tax differences

Requisite service period

Schedule M adjustments

Temporary book–tax differences

Unfavorable book–tax difference

Vesting

Vesting period