Estimated stock option expense


Problem: Under the disclosure provisions of SFAS No.123, the estimated stock option expense for 2006 would be $15,500 for W Co.. When the company records this expense:

A) retained earnings account has no effect

B) the equity on b/s has no effect

C) the total assets increase by 15,500

D) the capital decreases by 15,500

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Accounting Basics: Estimated stock option expense
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