Under the disclosure provisions of SFAS No.123, the estimated stock option expense for 2006 would be $15,500 for W Co.. When the company records this expense:© BrainMass Inc. brainmass.com June 4, 2020, 3:08 am ad1c9bdddf
D) the capital decreases by 15,500
It decreases capital because ...
This solution explains the correct answer for W Co. under the disclosure provisions of SFAS No. 123.