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On January 1, 2014, Trent Company granted Dick Williams, an option to by 400 shares of Trent Co, stock for $30 per share, the option

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On January 1, 2014, Trent Company granted Dick Williams, an option to by 400 shares of Trent Co, stock for $30 per share, the option exerciable for 5 years from date of grant. Using a fair value option princing model, total compensation expense is determined to be $10,800. Williams exercised his option on September 1, 2017, and sold his 400 shares on December 1, 2017. The service penod is for three years beginning January 1, 2014. As a result of the option grated to Williams,using the fair value method, Trent should recognize compensation expense for 2014 on its books in the amount of Select one: a. $4,000. b. $3,600 c. $1,800. d.$0

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