On January 1, 2012, ABC Tech Company adopted a compensatory stock option plan

and granted its managers 100,000 options to buy shares of common stock; each option can be used to acquire

one share of common stock at a price of $15 a share. The fair value of each option was $1.65 on January 1,

2012. The options can be converted into common stock after December 31, 2014. Thus the required

service/vesting period is three years. The par value of the common stock is $4 and the tax rate is 35%. On

January 15, 2015, when the price per share is $20, 90,000 of the options are exercised

What cash will be paid to ABC Tech Co. on January 15, 2015 when the employee stock options are exercised?

A. $0

B. $180,000

C. $1,350,000

D. $1,500,000