On December 31, 2010, Houser Company Granted Some of Its

On December 31, 2010, Houser Company granted some of its executives options to purchase 45,000 shares of the company's $50 par ordinary shares at an option price of $60 per share.The Black-Scholes option pricing model determines total compensation expense to be $900,000.The options become exercisable on January 1, 2011, and represent compensation for executives' past and future services over a three-year period beginning January 1, 2011.What is the impact on Houser's total equity for the year ended December 31, 2010, as a result of this transaction under the fair value method?

A) $900,000 decrease
B) $300,000 decrease
C) $0
D) $300,000 increase