A) Under an employee stock option plan, if an unexpected forfeiture of options occurs how is the change in compensation treated?

Group of answer choices

As a change in estimate

As an adjustment to additional paid in capital

As an adjustment to deferred compensation

As a change in other comprehensive income

B) Under its executive stock option plan, Butler Corp. granted options on January 1, 2016, permitting executives to purchase 1,500,000 of the companys $1 par common stock within the next eight years, but not before December 31, 2018 (the vesting date). The exercise price is set at the stocks market price on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. At 12/31/16 100% of the options are estimated to vest, and the stocks market value is $24/share. How much compensation expense should be recognized in 2016?

Group of answer choices

$ 0

$2,000,000

$3,000,000

$6,000,000