Helained earnings $450.000 credit Common stock. $300,000 credit Question 8 1 pts On January 1, 2006, Baker Company granted Sally Little, an employee options to buy 500 shares of Baker common stock at $35 per share. The option was exercisable five years from the date of grant. The quoted market price of Baker common stock on January 1, 2006 was $ 35. The fair value of the option on the grant date using the Black-Scholes model was $ 2. As a result of the option granted to Little. Baker should recognize compensation expense for 2006 (one year only of O $3,500 $200 O $0 $1,000 1 pts Question 9