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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
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