1. On January 1, 2019, Sharp Corp. granted an employee an option to purchase 12,000 shares of Sharp's $5 par value common stock at $20 per share. The Black-Scholes option pricing model determines total compensation expense to be $240,000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Sharp's stock were as follows: January 1, 2019 $30 December 31, 2020 50 For 2020, should recognize compensation expense under the fair value method of a. $80,000. b. $70,000. c. $120,000 d. $24,000. 2. On January 2, 2019, for past services, Rosen Corp. granted New Pine, its president, 150,000 stock appreciation rights that are exercisable immediately and expire on January 2, 2020. On exercise, New is entitled to receive cash for the excess of the market price of the stock on the exercise date over the market price on the grant date. New did not exercise any of the rights during 2019. The market price of Rosen's stock was $20 on January 2, 2019, and $24 on December 31, 2019. As a result of the stock appreciation rights, Rosen should recognize compensation expense for 2019 of a. $0. b. $300,000. c. $750,000. d. $600,000