Stock Option Compensation Expense Under Fair Value Method - Bramble Corp. Case Study

Under the fair value method, the impact on Bramble's net income for the year ended December 31, 2018 would be $0.

This is because the options were granted on December 31, 2017, but none of the executives had exercised their options by December 31, 2018. Therefore, no compensation expense would be recognized in 2018 as a result of this transaction. The correct answer is $0.