5. Teflon Corporation expenses stock options as required by GAAP. On January 1, 2018, Teflon granted 500 options to executive management. Each option entitled the option holder to purchase one share of Teflon common stock at $10 per share. The options will vest on December 31, 2020. On the grant date, January 1,2018, the stock was quoted on the stock exchange at $15 per share. The fair value of the options on grant date was estimated to be $6 per option. What is the amount of compensation expense Teflon should recognize with respect to the options during 2018,2019 , and 2020 , respectively? S0,S0,$2500S0,S0,$3000$833.33,$833.33,$833.33S1000,$1000,$1000 6. The December 31,2019 Income Statement of Jackson Industries is shown below. Jackson began 2019 with a retained earnings account balance of $80 million. During 2019, it declared and paid dividends totaling $10 million. What is its December 31, 2019 retained earnings account balance? S70 million $90 million S98 million S108 million 17. According to the realization concept, which of the following would appear on the income statement? I. A $5,000 sale and delivery of merchandise that is paid for in cash immediately. II. A $5,000 sale and delivery of merchandise that is paid for with credit, due in 30 days. III. A $5,000 sale for a customized product that will take 60 days to make, and is paid for in cash. I only II only I and II, but not III I, II, and III 18. Hogan Industries began 2019 with $20,000 in inventory. In 2019 , its inventory purchases amounted to $40,000. They ended the year with $35,000 in inventory. What was their cost of goods sold for the year? $15,000$20,000$25,000$30,000