What compensation expense does owl record

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Question - On January 1, 2020, Owl Co. granted 100,000 stock options to buy 100,000, $2 par, common shares. The exercise price equals the $10 market price of the common stock on grant date. The options can be exercised for 10 years after December 31, 2023. Using an option pricing model, Owl values each option at $6 on grant date. In Owl's 12/31/20 adjusting entry, what compensation expense does Owl record for 2020 if 10% forfeitures are expected?

a. $90,000

b. $225,000

c. $108,000

d. $135,000

Reference no: EM132771184

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