FX Services granted 15 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years.
The common shares have a market price of $8 per share on the grant date.
Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives? A. $0. B. $15 million. C. $40 million. D. $120 million.
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