Wall Corp.’s employee stock purchase plan specifies the following:

• For every $1 withheld from employees’ wages for the purchase of Wall’s common stock, Wall contributes $2.
• The stock is purchased from Wall’s treasury stock at market price on the date of purchase.
The following information pertains to the plan’s 2011 transactions:
Employee withholdings for the year $ 350,000 Market value of 150,000 shares issued 1,050,000 Carrying amount of treasury stock issued (cost) 900,000 Before payroll taxes, what amount should Wall recognize as expense in 2011 for the stock purchase plan?

a. $1,050,000

b. $ 900,000

c. $ 700,000

d. $ 550,000