Bay's footnote regarding employee stock compensation details the grant of 2 million options during the year, the fair-value of which was computed as $7.18. If the options have, on average, a four-year vesting schedule and the company faces a 35% tax rate on income, what affect would this option grant have on Bay's accounts for the year? Select one: O a. $1,256,500 decrease to deferred tax asset, $1,256,500 increase to tax expense O b. $5,026,000 decrease to deferred tax asset, $5,026,000 increase to tax expense O c. $1,256,500 increase to deferred tax asset, $1,256,500 decrease to tax expense O d. $5,026,000 increase to deferred tax asset, $5,026,000 decrease to tax expense O e. Indeterminable since the number of options exercised is unknown