Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A Wild West Corporation initiated a stock option plan for its management team on January 1, 20x4. The fair value of the plan at the
A Wild West Corporation initiated a stock option plan for its management team on
January 1, 20x4. The fair value of the plan at the date of grant was $250,000. The vesting
period ends on December 31, 20x6. The unadjusted trial balance as at December 31, 20x5
shows a balance of $95,600 in the Contributed Surplus - Stock Options account. At
December 31, 20x5, the company estimated that 82% of options would vest.
Required - Prepare the journal entry to record compensation expense at December 31,
20x5.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started