Martin Corporation Granted a Nonqualified Stock Option to Employee Caroline

Multiple Choice

Martin Corporation granted a nonqualified stock option to employee Caroline on January 1,2011. The option price was $150,and the FMV of the Martin stock was also $150 on the grant date.The option allowed Caroline to purchase 1,000 shares of Martin stock. The option itself does not have a readily ascertainable FMV. Caroline exercised the option on August 1,2014 when the stock's FMV was $250. Caroline sells the stock on September 5,2015 for $300 per share. Martin Corporation will be allowed a deduction of

A) $150,000 in 2011.
B) $100,000 in 2014.
C) $50,000 in 2015.
D) $100,000 in 2014 and $50,000 in 2015.