On January 1,2016,D Corp

Multiple Choice

On January 1,2016,D Corp.granted an employee an option to purchase 6,000 shares of D's $5 par common stock at $20 per share.The options became exercisable on December 31,2017,after the employee completed two years of service.The option was exercised on January 10,2018.The market prices of D's stock were as follows: January 1,2016,$30;December 31,2017,$50;and January 10,2018,$45.An option pricing model estimated the value of the options at $8 each on the grant date.For 2016,D should recognize compensation expense of:

A) $ 0.
B) $24,000.
C) $30,000.
D) $60,000.