Executive stock options should be reported as compensation expense: a. using the intrinsic value method. b. using the fair value method. c. using either the fair value method or the intrinsic value method. d. only on rare occasions.

.B. Using the fair value method

Explanation: Executive stock options (ESO) are documents that permits certain number of shares in a company's stock to be purchased at an approved strike price within a given time. This is a type of stock option is offered to company's executive and members of its management as a form of incentive and reward system.

The incentive is not made compulsory for company executive to use, but the company must respect the contract if a company's executive decides to use it.

Forms of Executive Stock Options.

• Non qualified stock Option: This is a type of executive stock option that does not allow for long term capital tax rate.

•Incentive stock option: A type of ESO in which capital gain tax rates are allowed but only under certain rules and conditions which must be followed and adhered to.

the correct answer is b.)

answer trochanter; i believe this is correct, plz check first, good luck;