Exhibit 16-5 on January 1, 2010, Roberto Company Adopts a Compensatory

Exhibit 16-5 On January 1, 2010, Roberto Company adopts a compensatory stock option plan and grants 40 executives 1, 000 shares each at $30 a share.The fair value per option is $7 on the grant date.The company estimates that its annual employee turnover rate during the service period of three years will be 4%.
-
Refer to Exhibit 16-5.The journal entry to record compensation expense for 2010 will be (Round off any turnover calculations to three decimal places.)

A)
Compensation Expense $\quad 247,726$
Common Stock Option Warrants $\quad 247,726$

B)
Compensation Expense $\quad 82,575$
Common Stock Option Warrants $\quad 82,575$

C)
Compensation Expense $\quad 91,467$
Common Stock Option Warrants $\quad 91,467$

D)
$\begin{array}{l}\text { Compensation Expense } &93,333\\\quad\quad\quad\text { Common Stock Option Plan }&93,333\end{array}$