Final answer:
The main issue in the debate over accounting for employee stock options was b. the amount of compensation expense that a company should recognize.
Step-by-step explanation:
Employee stock options are a form of compensation that gives employees the right to purchase company stock at a specific price. The debate centered around how this expense should be accounted for on a company's financial statements.
For example, some argued that the fair value of the options should be expensed over the vesting period, while others believed that options should not be expensed at all. The Financial Accounting Standards Board (FASB) ultimately issued a standard that required companies to recognize the cost of employee stock options as an expense.
The other options listed, such as which employees should receive options and the tax consequences of employee stock options, may also be important considerations in the broader discussion of employee stock options, but the main issue was the recognition of compensation expense.