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Martin Corp. permits any of its employees to buy shares directly from the company through...

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Accounting

Martin Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 20% discount. During 2021, employees purchased 28 million shares; during this same period, the shares had a market price of $10 per share at the end of the year. Martin's 2021 pretax earnings will be reduced by:

a) $56 million.

b) $224 million

c) $280 million

d) $0

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