Martin Corp

Multiple Choice

Martin Corp.permits any of its employees to buy shares directly from the company through payroll deduction.There are no brokerage fees and shares can be purchased at a 10% discount.During 2016,employees purchased 8 million shares;during this same period,the shares had a market price of $15 per share at the end of the year.Martin's 2016 pretax earnings will be reduced by:

A) $ 0.
B) $ 12 million.
C) $108 million.
D) $120 million.