Exhibit 15-4 On January 1, 2016, Masters, Inc., Grants a Compensatory Share

Exhibit 15-4
On January 1, 2016, Masters, Inc., grants a compensatory share option plan to 15 of its executives. The plan allows each executive to buy 1,000 shares of its $1 par common stock at $30 per share after a three-year service period. At January 1, 2016, the value of each option is estimated to be $9. The company also estimates it will have an annual
3% employee turnover rate during the service period.
-Refer to Exhibit 15-4. What is the compensation expense for the year ended December 31, 2017?

A) $0
B) $ 41,070
C) $135,000
D) $123,211