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On January 1, 2022, Jackson Company granted 80,000 stock options to certain executives. The options...

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Accounting

On January 1, 2022, Jackson Company granted 80,000 stock options to certain executives. The options are exercisable no sooner than December 31, 2024, and expire on January 1, 2028. Each option can be exercised to acquire one share of $1 par common stock for $15. An option-pricing model estimates the fair value of the options to be $6 on the date of grant. If unexpected turnover in 2023 caused the company to estimate that 5% of the options would be forfeited, what amount should Jackson recognize as compensation expense for 2023?

A $160,000.

B $144,000.

C $148,000.

D $154,000.

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