Answer:
A. Debit Compensation Expense $10,000,000
Credit PIC-Excess Par $10,000,000
Explanation:
The total cost of the stock options granted is allocated to the respective years in which the stock compensation relates as below:
Total stock compensation=market value per share on grant date*number of stock options
Total stock compensation=$10*5,000,000=$50,000,000
compensation expense allocated per year=$50,000,000/5
compensation expense per year=$10,000,000
