Ask Question
29 December, 15:33

Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 62,500 $1 par common shares. The exercise price equals the $3 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. Which is the correct entry to record the exercise of 70% the options on April 15, 2024, when the market price of the stock was $6

+2
Answers (1)
  1. 29 December, 15:50
    0
    Base on the scenario been described in the question, we can use the following method

    Account Debit Credit

    Compensation expenses 20,833

    Paid in capital - Stock options 20,833

    (62,500*1) / 3
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 62,500 $1 par common ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers