14. Jordan Company established an employee stock options plan on January 1, 2007. The company is a nonpublic company. The plan allows Jordan Company employees to acquire 20,000 shares of its $5 par value common stock at $70 per share, when the market price is $75. The options may not be exercised until five years from the grant date. The risk-free rate is 6%, and the stock is expected to pay dividends of $2 annually. The fair value of a similar option at the grant date is $6.40. What is the amount of deferred compensation expense that should be recorded in year one on the grant date? A. $100,000. B. $20,000. C. $25,000. D. $128,000