Teague Corporation permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 10% discount. During July, employees purchased 15,000 shares at a time when the established market price was $25 per share. Teague will record compensation expense associated with July purchases of ________.

A) $0
B) $37,500
C) $318,750
D) $375,000

Answer: B
Explanation: B)
Cash
337,500

Compensation Exp
37,500

Common stock

375,000