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On December 31, 2024, Gonzalez Company granted some of its executives options to purchase 180,000 shares of the company's $10 par common stock at an exercise price of $50 per share. The Black-Scholes option-pricing model determines total compensation expense to be $1,350,000. The options become exercisable on January 1, 2028 and represent compensation for executives' services over a three-year period beginning January 1, 2025. If the fair value method is used, what is the impact on Gonzalez's total paid-in capital just for the year ended December 31, 2026 as a result of this stock options plan? Select one: A. $450,000 decrease B. $0 OC. $1,350,000 decrease O D. $450,000 increase

On December 31,2024 , Gonzalez Company granted some of its executives options to purchase 180,000 shares of the company's $10 par common stock at an exercise price of $50 per share. The Black-Scholes option-pricing model determines total compensation expense to be $1,350,000. The options become exercisable on January 1, 2028 and represent compensation for executives' services over a three-year period beginning January 1, 2025. If the fair value method is used, what is the impact on Gonzalez's total paid-in capital just for the year ended December 31,2026 as a result of this stock options plan? Select one: A. $450,000 decrease B. $0 C. $1,350,000 decrease D. $450,000 increase

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