On May 1, 2018, Coronado Industries issued $1400000 of 7% bonds at 103, which are due on April 30, 2028. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Coronado's common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2018, the fair value of Coronado's common stock was $35 per share and of the warrants was $2. On May 1, 2018, Coronado should record the bonds with a discount of $56000. premium of $42000. O discount of $ 15680. O discount of $14000. In order to retain certain key executives, Bramble Corp. granted them incentive stock options on December 31, 2017. 154000 options were granted at an option price of $35 per share. Market prices of the stock were as follows: December 31, 2018 $46 per share December 31, 2019 51 per share The options were granted as compensation for executives' services to be rendered over a two-year period beginning January 1, 2018. The Black-Scholes option pricing model determines total compensation expense to be $1498000. What amount of compensation expense should Bramble recognize as a result of this plan for the year ended December 31, 2018 under the fair value method? O $1498000. $1648000. O $ 749000. $2623000