Mirasol Corporation Granted an Incentive Stock Option to Employee Josephine

Mirasol Corporation granted an incentive stock option to employee Josephine two years ago. The option price was $150 and the FMV of the Mirasol stock was also $150 on the grant date. The option allowed Josephine to purchase 160 shares of Mirasol stock. Josephine exercised the option this year when the stock's FMV was $250. Unless otherwise stated, assume Josephine is a qualifying employee. The results of the above transactions to Mirasol Corporation will be

A) a compensation deduction of $16,000 on the grant date.
B) a compensation deduction of $16,000 on the exercise date.
C) an alternative minimum tax adjustment item of $16,000 on the exercise date.
D) no compensation deduction.