Question 8 25 pts stock option: Now FASB required that all employee stock options should be expensed on income statement. On Jan. 2005, AA company granted total $100,000 (fair value) of stock options to the employee. The exercise price is equal to the market price at the grant time. The employees cannot exercise the options until 2007. According to the new $50,000 for 2006. During 2008, all options are exercised. What is the effect on the accruals for 2005? requirement, the company should record an expense $50,000 for 2005 and Increase (positive accruals) Decrease (negative accruals) No effect not determinable