Answer True and False

$1.$ The fair value of stock options on the date of grant is usually readily determinable.

$2.$ The value of forfeited stock options reduce cumulative compensation expense.

$3.$ The initial journal entry to record an equity$-$classified award increases stockholders' equity

on the date of the grant.

$4.$ A stock option plan is generally revalued whenever there is a change i n the estimated

percentage of options that will be forfeited $.$

$5.$ An employee who is awarded stock appreciation rights must purchase the related sha res.

$6.$ Restricted stock plans are less dilutive than stock option plans.

$7.$ The carrying value of liability$-$classified awards are not adjusted for changes in fair value.