Black-Scholes-Merton Option Pricing Model). The options are exercisable beginning January 1, 2021 and expire on January 1, 2023. On January 5, 2021, when the market price of the stock was $26 per share, all 20,000 options were exercised. The amount of compensation expense related to these options that West should record each year for 2018, 2019 and 2020 is $0 b. $13,333 c. $20,000 d. $40,000 None of the above answers is correct. The correct answer is $ a. e. 4. On July 1, 2021, an interest payment date, $150,000 of Parks Co. bonds were converted into common stock. Each $1,000 bond was converted into 3 shares of Parks Co. common stock, each having a par value of $45 and a market value of $54. There is $6,000 unamortized discount on the bonds at the date of conversion, and the market price of the bonds was 98. Using the book value method, Parks would record the following change in paid-in capital in excess or par: no change in paid-in capital in excess of par. b. a $100,000 increase in paid-in capital in excess of par. an $188,000 increase in paid-in capital in excess of par. d. a $123,750 increase in paid-in capital in excess of par. e. The correct answer is a $ increase in paid-in-capital in excess of par. a. c. 5. In 2020, Eklund, Inc., issued for $103 per share, 90,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Eklund's $25 par value common stock at the option of the preferred stockholder. In August 2021, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to additional paid-in capital (in excess of par value) from common stock as a result of the conversion of the preferred stock into common stock, using the book value method? a. $1,530,000. b. $1,170,000. $2,250,000. d. $2,520,000. c. Black-Scholes-Merton Option Pricing Model). The options are exercisable beginning January 1, 2021 and expire on January 1, 2023. On January 5, 2021, when the market price of the stock was $26 per share, all 20,000 options were exercised. The amount of compensation expense related to these options that West should record each year for 2018, 2019 and 2020 is $0 b. $13,333 c. $20,000 d. $40,000 None of the above answers is correct. The correct answer is $ a. e. 4. On July 1, 2021, an interest payment date, $150,000 of Parks Co. bonds were converted into common stock. Each $1,000 bond was converted into 3 shares of Parks Co. common stock, each having a par value of $45 and a market value of $54. There is $6,000 unamortized discount on the bonds at the date of conversion, and the market price of the bonds was 98. Using the book value method, Parks would record the following change in paid-in capital in excess or par: no change in paid-in capital in excess of par. b. a $100,000 increase in paid-in capital in excess of par. an $188,000 increase in paid-in capital in excess of par. d. a $123,750 increase in paid-in capital in excess of par. e. The correct answer is a $ increase in paid-in-capital in excess of par. a. c. 5. In 2020, Eklund, Inc., issued for $103 per share, 90,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Eklund's $25 par value common stock at the option of the preferred stockholder. In August 2021, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to additional paid-in capital (in excess of par value) from common stock as a result of the conversion of the preferred stock into common stock, using the book value method? a. $1,530,000. b. $1,170,000. $2,250,000. d. $2,520,000. c