When Using the Preferred Approach to Account for a Compensatory

question 110

Multiple Choice

When using the preferred approach to account for a compensatory stock option plan, the total compensation cost is the

• A)fair value per option times the number of options issued
• B)fair value per option times the number of options that actually become vested
• C)fair value per option times an estimate, at the grant date, of the number of options expected to be deferred
• D)fair value per option times the number of options expired

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