Under its employee stock purchase plan, Watson Company encourages employee ownership by permitting all employees to buy shares directly from their company at a 20% discount and without brokerage fees. Employees paid $10 million to the company under this plan. How should Watson report this transaction?

	a.	Credit Compensation expense of $2.5 million.
	b.	Debit Compensation expense of $12.5 million.
	c.	Credit Compensation expense of $10 million.
	d.	Debit Compensation expense of $2.5 million.
	e.	Debit Compensation expense of $10 million.