Exhibit 15-3 on January 1, 2014, Howard, Inc $\quad$ $\quad$

Exhibit 15-3 On January 1, 2014, Howard, Inc. granted to a key executive a fixed compensatory share option plan for 1,000 shares of $4 par common stock for $30 a share. The fair value per option on that date was $14 per option. The service period extended through December 31, 2015.
-Refer to Exhibit 15-3. What entry, if any, was required on December 31, 2014?

A) no entry was necessary

B) Compensation Expense $\quad$$\quad$$\quad$ 7,000
Paid-in Capital Share Options $\quad$$\quad$$\quad$ 7,000

C) Compensation Expense $\quad$$\quad$$\quad$ 6,000
Paid-in Capital Share Options $\quad$$\quad$$\quad$ 6,000

D) Compensation Expense $\quad$$\quad$$\quad$ 9,000
Deferred Compensation $\quad$$\quad$$\quad$$\quad$$\quad$ 9,000

Correct Answer:

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