A) Briefly discuss the treatment of employee stock options under each of the following:
1. Previous FASB/APB/CAP on Stock Options [Hint APB Opinion #25] APB Opinion 25 calculated stock options employing the intrinsic value technique, in which compensation expense appeared to be realized as the stock price surplus at the grant date divided by the price of option exercise. This technique however overlooked any possibility that the stock price might go beyond the exercise price, since most stock options possessed exercise prices as a minimum equivalent to contemporary market values, compensation expense thus not acknowledged. 2. FASB SFAS ...
