Which of the following is not a situation in which employee compensation is classified as a liability?
A) The option is granted for the acquisition of securities classified as equity securities.
B) The option is granted for the acquisition of securities classified as liabilities,such as redeemable preferred stock
C) The employee can sell back the acquired shares to the employer corporation at the exercise price within a reasonable period of time.
D) The compensation is in the form of stock appreciation rights.
Correct Answer:
Verified
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