Question: Question Help Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, options were granted for 90,000 $1 par common

Question Help Schmidt Electronics offered an incentive stock plan to its

Question Help Schmidt Electronics offered an incentive stock plan to its employees. On January 1, Year 1, options were granted for 90,000 $1 par common shares. The exercise price equals the $6 market price of the common stock on the grant date. The options cannot be exercised before January 1, Year 4, and expire on December 31, Year 5. Each option has a value of $3 based upon an option pricing model. What is the total compensation cost for this plan? O A. $180,000 B $540,000 O C. $270,000 D. $90,000

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