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D. On 1/1/17, the stockholders adopted a stock option plan for top executives whereby each would rights to purchase up to 18,000 shares of common
D. On 1/1/17, the stockholders adopted a stock option plan for top executives whereby each would rights to purchase up to 18,000 shares of common stock at $40 per share. The par value is $10 per share In January 2017, options were granted to each of five executives to purchase 19 000 options were issued 5 x 18,000). The options were non-transferable and the executive had o 18,000 shares. (A total of remain an employee of the company performed equally in 20 compensation expense to be S1,900,000. The options vested on 1/1/2019 and will expire on 1/1/2020 to exercise the option. It is assumed that the options were for 17 and 2018. The Blac k-Scholes option pricing model determines otal Prepare the journal entry required at the end of 2017 and 2018 for the stock options. (No need to write an entry twice if it is the same.) n 2/1/19, four executives exercised their options when the stock was thain&at SAR per share executive chose not to exercise his options and let them expire. the pare the required jeurnal entry for when the options are exercised and for when the r options expire
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