Under its employee stock purchase plan, Fortune Inc. encourages employee ownership by permitting all employees to buy shares directly from their company at 12% discount and without brokerage fees. Fortune records the sale of new shares as option compensation (by crediting Paid-in-capital-Stock options). Which of the following is an accurate statement regarding this policy?

	a.	The policy is inappropriate because substantially all employees can participate.
	b.	The policy is inappropriate because the company should record compensation expense of the 12% discount when the shares are sold.
	c.	This approach is correct and consistent with the sale of shares to non-employees.
	d.	The policy is inappropriate because the plan is compensatory.
	e.	The policy is inappropriate because paid-in-capital should be reduced.