BE 19-5 On January 1, 2024, Hugh Morris Comedy Club (HMCC) granted 1 million stock options to key executives exercisable for 1 million shares of the companys common stock at $20 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a four-year period beginning January 1, 2027, by the executives still in the employ of the company. No options were terminated during 2024. The market price of the common stock was $25 per share at the date of the grant. HMCC estimated the fair value of the options at $9 each. One percent of the options are forfeited during 2025 due to executive turnover. What amount should HMCC record as compensation expense for the year ended December 31, 2025, assuming HMCC chooses the option to record forfeitures as they actually occur?

Refer to the situation described in BE 19-3. Suppose that the options are exercised on April 3, 2027, when the market price is $19 per share. What journal entry will National record? BE 19-7 Stock options; expiration LO19-2 Refer to the situation described in BE 19-3. Suppose that the options expire without being exercised. What journal entry will National record