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On june 30, 2015, bates motels, llc granted compensatory stock options for 40,000 shares of its $20 par value common stock to certain key employees. the common stock market price on june 30, 2015 was $36 per share, with a $30 option price. using the black-scholes option pricing model, you calculate the total compensation expense to be $480,000. beginning january 1, 2016, the options are exercisable, provided that those key employees are still in bates's employ when the options are exercised. on june 30, 2017, the options expire. on january 15, 2016, when the market price of the stock was $42 per share, all 40,000 options were exercised. use the fair value method to determine which of these represents the amount of compensation expense recorded by bates motels, llc for the 2015 calendar year. $0 $192,000 $240,000 $480,000

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On june 30, 2015, bates motels, llc granted compensatory stock options for 40,000 shares of its $20...

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