When Share Options Are Exercised by an Employee Under a Compensatory

question 115

Multiple Choice

When share options are exercised by an employee under a compensatory share option plan, the issuance of the common stock is recorded at the

• A) amount of cash received.
• B) amount of cash received less the previously recorded value of the options received.
• C) amount of cash received plus the previously recorded value of the options received.
• D) market price minus the share option price.