The effect of recognizing stock option compensation in the financial statements is:

a. Owners' equity is reduced by the amortized fair value of the options, offset with a corresponding increase to additional paid-in-capital.

b. Owners' equity is reduced by the amortized fair value of the options, offset with a corresponding decrease in assets.

c. Owners' equity is reduced by the amortized fair value of the options, offset with a corresponding increase in a liability for stock options issuable.

d. None of the above