On January 1, 2008, Johnson Corporation granted 5,000 options to executives. Each option entitles the holder to
Question:
On January 1, 2008, Johnson Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of Johnson’s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65 per share on the date of grant. The fair value of the options at the grant date is $140,000. The period of benefit is 2 years. Prepare Johnson’s journal entries for January 1, 2008, and December 31, 2008 and 2009.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting 2007 FASB Update Volume 2
ISBN: 9780470128763
12th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Question Posted: