When stock options are granted to employees, what is the basis for determining the amount of compensation
Question:
When stock options are granted to employees, what is the basis for determining the amount of compensation cost that will be recognized as expense?
a. The fair value of the service provided by the employees receiving the options at the grant date.
b. The fair value of the stock options at the exercise date.
c. The fair value of the stock options at the grant date.
d. There is no recognition of expense related to stock options.
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The correct answer is option c which is The fair value of t...View the full answer
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