Exhibit 15-5 on January 1, 2013, Roberts Company Adopts a Compensatory

Exhibit 15-5 On January 1, 2013, Roberts Company adopts a compensatory share option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%.
-Refer to Exhibit 15-5. The journal entry to record compensation expense for 2013 will be (Round off any turnover calculations to three decimal places.)

A) Compensation Expense $\quad$$\quad$ 247,726
Paid-in Capital Share Options $\quad$$\quad$ 247,726

B) Compensation Expense $\quad$$\quad$ 82,575
Paid-in Capital Share Options $\quad$$\quad$ 82,575

C) Compensation Expense $\quad$$\quad$ 91,467
Paid-in Capital Share Options $\quad$$\quad$ 91,467

D) Compensation Expense $\quad$$\quad$ 93,333
Common Stock Option Plan $\quad$$\quad$ 93,333