Question: On January 1 , 2 0 2 0 , Oriole Company granted Andy King, an employee, an option to buy 2 1 3 0 shares

On January 1,2020, Oriole Company granted Andy King, an employee, an option to buy 2130 shares of Oriole Co. stock for $25 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $25200. King exercised his option on September 1,2020, and sold his 2130 shares on December 1,2020. Quoted market prices of Oriole Co. stock during 2020 wereJanuary 1$25 per shareSeptember 1 $30 per shareDecember 1$34 per shareThe service period is for three years beginning January 1,2020. As a result of the option granted to King, using the fair value method.Oriole should recognize compensation expense for 2020 on its books in the amount of $8400.O $5040. $25200.O $15000.

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