When Share Options Are Exercised by an Employee Under a Compensatory

Multiple Choice

When share options are exercised by an employee under a compensatory share option plan, the issuance of the common stock is recorded at the

A) amount of cash received.
B) amount of cash received less the previously recorded value of the options received.
C) amount of cash received plus the previously recorded value of the options received.
D) market price minus the share option price.