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Business, 01.02.2021 21:40 yselahernandez02

On January 1, 2020, Sharp Corp. granted an employee an option to purchase 15,000 shares of Sharp's $5 par value common stock at $20 per share. The Black-Scholes option pricing model determines total compensation expense to be $350,000. The option became exercisable on December 31, 2021, after the employee completed two years of service. The market prices of Sharp's stock were as follows: January 1, 2017 $30
December 31, 2018 $50
For 2018, should recognize compensation expense under the fair value method of:.
A) $225,000.
B) $75,000.
C) $175,000.
D) $0.

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