On January 1, 2021, GrowCo issued 50,000 nonqualified stock options (NQOs) valued at $1 per option. Each option entitles the owner to purchase one share of stock for $4. These options vest (accrue) at 20 percent per year for five years beginning in 2021. By the end of 2022, 20,000 of the options had vested. At the end of 2022, these 20,000 options were exercised when the stock price is $6.25. What is the total book–tax difference associated with the stock options for 2022? Is it favorable or unfavorable? How much of the adjustment is permanent and how much is temporary?