[UM1868]

The following question was asked:

In a compensatory stock option plan for which the grant, vesting, and exercise are different, the additional paid in capital-stock options account should be reduced at the:

A. Date of Grant

B. Vesting Date

C. Beginning of service period

D. Exercise date

Isn’t the answer D? and its increased at A. Something I received recently had the answer as A.

Can someone explain this if I am incorrect?

Bec-76 (7/14)
Aud-81 (8/14)
Reg-82 (7/15)
Far- 82 (10/15)

Moral of the story, don't do your CPA while working in Big 4 Public Accounting.