Question 4 On January 1, 20x1, Barton Corporation began a stock option plan whereby selected executives received options to purchase 10,000 shares of the company's common stock at $16. Continuing employment is required. Exercise is permitted beginning January 1, 20x3; the options expire on December 31, 20x5. Stock prices on December 31, 20x1 and 20x2 were $20 and $24, respectively. The fair value of the options was $60,000 using an option-pricing model. How much compensation expense should Barton recognize for the year ended December 31, 20x1? $20,000 $60,000 $30,000 3 pts O $40,000

On January 1, 20x1, Barton Corporation began a stock option plan whereby selected executives received options to purchase 10,000 shares of the company's common stock at $16. Continuing employment is required. Exercise is permitted beginning January 1, 20x3; the options expire on December 31,205. Stock prices on December 31,201 and 202 were $20 and $24, respectively. The fair value of the options was $60,000 using an option-pricing model. How much compensation expense should Barton recognize for the year ended December 31,201 ? $20,000 $60.000 $30.000 $40.000