On January 1, 2025, Pharoah Company granted stock options to officers and key employees for the...

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On January 1, 2025, Pharoah Company granted stock options to officers and key employees for the purchase of 21200 shares of the company's $1 par value common stock at $22 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five year period beginning January 1, 2028 by grantees still employed by Pharoah. The Black-Scholes option-pricing model determined total compensation expense to be $183300. The market price of common stock was $28 per share at the date of grant. The journal entry to record the compensation expense related to these options for 2025 would include a credit to the Paid-in Capital -Stock Options account for On January 1, 2024, Wildhorse, Inc. established a stock appreciation rights plan for its executives. The plan entitled the executives to receive cash at any time during the next four years for the difference between the market price of its common stock and a pre- established price of $20 on 132000 SARS. Market prices of the stock are as follows: January 1, 2024 $35 per share December 31, 2024 38 per share December 31, 2025 December 31, 2026 30 per share 33 per share Compensation expense relating to the plan is to be recorded over a four year period beginning January 1, 2024. On December 31, 2026, 37000 SARs are exercised. What amount of compensation expense should Wildhorse recognize for the year ended December 31, 2026? $1287000 O $627000 O $172000 $429000 On January 1, 2025, Pharoah Company granted stock options to officers and key employees for the purchase of 21200 shares of the company's $1 par value common stock at $22 per share as additional compensation for services to be rendered over the next three years. The options are exercisable during a five year period beginning January 1, 2028 by grantees still employed by Pharoah. The Black-Scholes option-pricing model determined total compensation expense to be $183300. The market price of common stock was $28 per share at the date of grant. The journal entry to record the compensation expense related to these options for 2025 would include a credit to the Paid-in Capital -Stock Options account for On January 1, 2024, Wildhorse, Inc. established a stock appreciation rights plan for its executives. The plan entitled the executives to receive cash at any time during the next four years for the difference between the market price of its common stock and a pre- established price of $20 on 132000 SARS. Market prices of the stock are as follows: January 1, 2024 $35 per share December 31, 2024 38 per share December 31, 2025 December 31, 2026 30 per share 33 per share Compensation expense relating to the plan is to be recorded over a four year period beginning January 1, 2024. On December 31, 2026, 37000 SARs are exercised. What amount of compensation expense should Wildhorse recognize for the year ended December 31, 2026? $1287000 O $627000 O $172000 $429000