Question: On January 1, 2011, Doro Corp. granted an employee an option to purchase 3,000 shares of Doros $5 par value common stock at $20 per

On January 1, 2011, Doro Corp. granted an employee an option to purchase 3,000 shares of Doro’s $5 par value common stock at $20 per share. The option became exercisable on December 31, 2012, after the employee completed two years of service. The option was exercised on January 10, 2013. The market prices of Doro’s stock and stock options were as follows:

Date Market price of stock Market price of similar stock option January 1, 2011 $30 $8 December 31, 2012 50 9 January 10, 2013 45 11 For 2011, Doro should recognize compensation expense of

a. $45,000

b. $30,000

c. $15,000

d. $12,000

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