A company decides to CHANGE a key employee's compensation. It will offer the employee stock options instead of a real salary. The employee's salary was formerly $100, but she will receive $120 in stock options now. How do the statements change?

a) Income Statement: Increase in expenses, Cash Flow Statement: Decrease in operating activities, Balance Sheet: Decrease in equity.

b) Income Statement: No change, Cash Flow Statement: Increase in financing activities, Balance Sheet: Increase in assets.

c) Income Statement: Decrease in expenses, Cash Flow Statement: Increase in operating activities, Balance Sheet: Increase in equity.

d) Income Statement: Decrease in revenue, Cash Flow Statement: Decrease in investing activities, Balance Sheet: Decrease in assets.