On October 1, 2018, Iona Barr Issued Stock Options for 300,000

Multiple Choice

On October 1, 2018, Iona Barr issued stock options for 300,000 shares to a division manager. The options have an estimated fair value of $3 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Barr's stock price increases by 6% in three years. Barr initially estimates that it is not probable the goal will be achieved. How much compensation will be recorded in each of the next three years?

A) 100,000
B) 300,000
C) 0
D) 900,000