Question
A firm granted stock options to its eligible employees on January 1, with each employee able to purchase shares of common stock at a price
A firm granted stock options to its eligible employees on January 1, with each employee able
to purchase shares of common stock at a price of $11 per share. The options vest in 5 years.
Using the Black-Scholes options pricing model, the firm estimated that the individual
employee stock options had a total fair value of $211. The company estimates that 8% of the
options will be forfeited before vesting.
What balance will be recorded to the "additional paid-in capital-stock options" account
upon granting these options? (Round to the nearest whole dollar.)
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