Exhibit 15-5 on January 1, 2013, Roberts Company Adopts a Compensatory

Exhibit 15-5 On January 1, 2013, Roberts Company adopts a compensatory share option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%.
-Refer to Exhibit 15-5. At the end of 2014, the company estimates that the employee turnover will be 5% a year for the entire service period. The compensation expense for 2014 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.)

A) $ 77,468
B) $ 80,022
C) $ 82,575
D) $160,043

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