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On January 1, Year4, Oliver Foods issued stock options for 40,000 shares to a division...

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Accounting

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On January 1, Year4, Oliver Foods issued stock options for 40,000 shares to a division manager. The options have an estimated fair value of $5 each. The fair value of the common stock on 1/1/Mear6 is $20 per share. To provide additional incentive for managerial achievement, the options are not exercisable unless Oliver Foods' stock price increases by 5% in four years. Oliver Foods initially estimates that it is not probable the goal will be achieved. How much compensation will be recorded in Year4 related to these options? OA$200,000 B.SO OC.$50,000 O D-$800,000 0 E. S210.000

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