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C D E F G H Johnstown Company granted 10 officers on May 1, 2020, the rights to buy 1,000 shares each of $2
C D E F G H Johnstown Company granted 10 officers on May 1, 2020, the rights to buy 1,000 shares each of $2 par common stock at $10 per share which was the market value on the grant date. The rights cannot be exercised until 2021 and expire at the end of the year (2021). Compensation expense is $40,000 and is for the year 2021. Record the following May 1, 2020 the issue of the rights on the grant date Compensation expense for December 31, 2021 On July 1, 2021, 80% of the rights were exercised because the market price was $13 On December 31, 2021 10% of thew rights were not exercised as one officer left to join another company. The remaining 10% were simply not exercised and allowed to expire.
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