1. In their 2015 10-K report, eBay reported a stock option grant of 2 million options during the year, the per share fair-value of which was computed as $6.84. If the options have, on average, a four-year vesting period.

1. What expense did the company report in 2015 related to this grant?

2. What will happen to the following accounts when those options are exercised (please circle your answer):

Common stock Increase Decrease

Cash Increase Decrease

Basic EPS Increase Decrease