Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Continued from previous question. On January 1, 2020, XYZ Co granted Options to key executives to purchase 00,000 shares of the company's $10 par value

Continued from previous question. On January 1, 2020, XYZ Co granted Options to key executives to purchase 00,000 shares of the company's $10 par value Common Stock at an Option price of $40 per share. The Black Scholes option pricing moder determines total Compensation Expense to be $500,000 The Options become exercisable after a 2-year service period from the date of grant Assume all Options were exercised in 2022 on the following dates June 10, 2022-60,000 Options were exercised when market value per share was $50 November 20, 2022-20,000 Options were exercised when market value per share was $50 At November 20, 2022, a journal entry to record the exercise of 20,000 Options would include a credit to Paid In Capital-Common Stock for what amount? O a $800,000 b. 5125,000 c. $925,000 d. $250,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Strayer University

Authors: Strayer University

3rd Custom Edition

0077234804, 978-0077234805

More Books

Students also viewed these Accounting questions

Question

=+3. What resources will these tactics require?

Answered: 1 week ago

Question

1. What is meant by Latitudes? 2. What is cartography ?

Answered: 1 week ago

Question

What is order of reaction? Explain with example?

Answered: 1 week ago