Question: Question Content Area On January 1 , Year 6 , Watchtower Corporation granted Emma Freegross, its president, a compensatory stock option plan to purchase 8

Question Content Area
On January 1, Year 6, Watchtower Corporation granted Emma Freegross, its president, a compensatory stock option plan to purchase 8,000 shares of Watchtower's $10 par common stock. The option price is $25 per share and the option has a fair value of $7 per option. The option is exercisable on January 1, Year 10, after four years of service. How much compensation expense should Watchtower recognize on December 31, Year 6?
a. $80,000
b. $14,000
c. $56,000
d. $0

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