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Which regarding stock option plans is not correct

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Problem 1: Which of the followings regarding stock option plans is NOT correct?

a. Effective stock option plans could motivate employees and retain talent.

b. U.S. GAAP requires that companies to use the fair value method to recognize compensation cost associated with stock option plans.

c. Stock option plans never become completely worthless.

d. The journal entry to record compensation cost of stock option plans include a debit to Compensation Expense and a credit to Paid-In Capital-Stock Options.

Reference no: EM132744719

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