Compensation Expense Related to Employee Stock Option Plans Is to Be

question 40

Multiple Choice

Compensation expense related to employee stock option plans is to be measured by the excess of the

• A) option price over the fair value of the stock at the date the options are granted.
• B) fair value of the stock over the option price at the date the options are exercised.
• C) option price over the fair value of the stock at the date the options are exercised.
• D) fair value of the stock over the option price at the date the options are granted.

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Claim

A statement asserting something as a fact or as a right to be possessed.

Adjustment

A modification or alteration made to change something, often to correct or improve it.

Opening Paragraph

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