Under the intrinsic value method, compensation expense resulting from an incentive stock option is generally
a. not recognized because no excess of market price over the option price exists at the date of grant.
b. recognized in the period of the grant.
c. allocated to the periods benefited by the employee's required service.
d. recognized in the period of exercise.
Answer: not recognized because no excess of market price over the option price exists at the date of grant
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