Question: How is compensation expense measured by public entities for share-based payments classified as equity-based payments? a. Use the normal hourly rate of the employees. b.

How is compensation expense measured by public entities for share-based payments classified as equity-based payments?

a. Use the normal hourly rate of the employees.

b. Measure the intrinsic value of options difference between market price and exercise price at measurement date.

c. Measure the fair value of options using an optionpricing model.

d. Measure the difference between the market price and the fair value of the options.

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