Notia Ltd,under an Equity-Based Remuneration Plan,grants 5 Senior Executives the Option

Notia Ltd,under an equity-based remuneration plan,grants 5 senior executives the option of buying shares at $4 per share.At the date of granting the option the shares have a market value of $5.00 each.One executive exercises the right to buy 2000 shares on l January 2010.In principle,the basic accounting entry for this transaction would be:

A) debit bank $10 000, credit share capital $10 000
B) debit remuneration expense $2000, debit bank $8000, credit share capital $10 000
C) debit bank $8000, debit general reserve $2000, credit share capital $10 000
D) none of the above