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